The National Childcare Scheme (NCS) is currently available to parents regardless of whether or not the early learning and childcare service their child is attending is participating in Core Funding.
The NCS has undergone a number of enhancements in recent Budgets with the minimum NCS subsidy steadily rising from €0.50 in 2022 to €2.14 in September 2024 alongside extensions to eligibility. Additionally, since September 2024, the NCS has been open to Tusla-registered childminders who wish to participate in the scheme. Families availing of childminders who are participating in the NCS can claim a subsidy towards their costs. Further enhancements to the income-assessed subsidy are being introduced from September 2026, raising the base threshold from €26,000 to €34,000 and the maximum threshold from €60,000 to €68,000, with additional increases to the multiple child discounts[] .
The introduction of Core Funding in 2022 brought a significant increase in investment for the sector. €259 million of funding was made available for services in year 1 of the scheme, of which €210.8 million was entirely new funding to the sector.
That annual allocation has increased each year since and has exceeded €390 million for year 4 of the Scheme, which started in September 2025. This represents an increase of over 50% in Core Funding in three years.
I was delighted to announce further investment in Core Funding in Budget 2026. The additional funding being made available in 2026 will see the allocation for Core Funding in the next programme year which begins in September 2026 increase to over €480 million. That is an additional €89.3 million on the current full year allocation, or a 23% increase.
While the Department cannot mandate providers to participate in the Scheme, every effort has been made to carefully design Core Funding to meet the policy objectives including achieving high levels of participation by providers.
Shaping the Future: The Early Years Action Plan, Phase 1 report (published on 17th December 2025) sets out measures to achieve key Programme for Government commitments on the affordability, quality, and accessibility of early learning and care (ELC) and school-age childcare (SAC). The Action Plan adopts a phased approach that enables action to be taken in 2026 while allowing adequate time for a broad public consultation and analysis on longer-term actions. Results of this consultation, as well as additional analysis, will inform Phase 2 of the Action Plan. Phase 2 actions will be published later in 2026 and will be undertaken from 2027 through to the end of 2029.
However, to deliver on the Programme for Government commitment to progressively reduce parental fees to €200 per month, the Phase 1 report of Shaping the Future states that a roadmap will be set out in Phase 2 to ensure that all publicly funded providers are supported to take part in Core Funding.
As noted in the Phase 1 report, this will include measures to reduce the administrative burden for providers of participating in publicly funded schemes.
Phase 2 of Shaping the Future is in development and will be published by year end.
Improving access to quality and affordable Early Learning and Care and School Age Childcare is a key priority of Government.
Early learning and childcare capacity is increasing. Data from the Annual Early Years Sector Profile 2024/25 shows that the estimated number of enrolments increased by approximately 25% from the 2021/22 programme year.
The Department continues to support the ongoing development and resourcing of Core Funding which has given rise to a significant expansion of places since the scheme was first introduced. Core Funding, which is in its fourth programme year, funds services based on the number of places available.
This provides stability to services, and reduces the risk associated with opening a new service or expanding an already existing service.
The Government is also supporting the expansion of capacity through capital funding. The Building Blocks Extension Grant Scheme is designed to increase capacity in the 1–3-year-old, pre–Early Childhood Care and Education, age range for full day care. Core Funding Partner Services could apply for capital funding to physically extend their premises or to construct or purchase new premises. The Scheme will deliver up to 1,500 full-day care places for 1- to 3-year-olds.
Following on from the success of the Building Blocks Extension Grant Scheme, a further Building Blocks scheme is open for applications. This round of capital funding will focus on funding extensions to existing premises to allow for increased numbers of children to be offered places on a full-time basis. Community and private providers who are currently Core Funding partner services will be eligible to apply for this scheme. Details can be found here: https://www.gov.ie/en/department-of-children-disability-and-equality/publications/building-blocks-extension-scheme-phase-2/
Separately, I recently announced €135 million of capital investment over the coming five years for State-led services to provide high-quality, accessible early learning and childcare. The process will begin in 2026 with investment in buildings in what will be a ground-breaking initiative.
The State-led initiative will provide thousands of places up to 2030.
