Ruairí Ó Murchú
Ceist:42. Deputy Ruairí Ó Murchú asked the Minister for Climate, Energy and the Environment to outline the plans, to 2030, for the development of district and communal heating systems. [65853/26]
Amharc ar fhreagraWritten Answers Nos. 42-71
42. Deputy Ruairí Ó Murchú asked the Minister for Climate, Energy and the Environment to outline the plans, to 2030, for the development of district and communal heating systems. [65853/26]
Amharc ar fhreagraGovernment policy is supportive of the expansion of district heating and recognises the contribution it can make to Ireland’s energy and climate goals. The District Heating Steering Group Report was approved by Government in 2023, and a Working Group has been convened to oversee implementation of the Steering Group recommendations. These recommendations are being actioned by my Department. The report identified that as a newly emerging market, the district heating sector will require support to stimulate early growth in the sector. Government is supporting this sector through the combination of capital grants and the introduction of legislation.
Funding to support the development of efficient district heating has been allocated through the Climate Action Fund (CAF) and the Infrastructure Climate and Nature Fund, while Local Authorities can avail of Pathfinder funding for feasibility studies. The Tallaght District Heating Project was developed by South Dublin County Council and supported through the CAF. Additionally, €50 million has been allocated from the CAF to support the Dublin District Heating Project. I have also allocated €5 million from the CAF to support pre-construction costs for efficient district heating projects in Ireland. Under the National Development Plan, for the period 2026 to 2030, up to €100 million has been allocated to support the full development of efficient district heating networks. This level of funding demonstrates the Government’s ongoing commitment to district heating as a core component of Ireland’s decarbonisation strategy.
In tandem, my Department is working on the Heat (Networks and Miscellaneous Provisions) Bill to provide the legislative and regulatory underpinning for the sector in Ireland. Ireland's National District Heating Centre of Excellence has also been established within the Sustainable Energy Authority of Ireland to support the rollout of efficient district heating networks.
43. Deputy John Clendennen asked the Minister for Climate, Energy and the Environment his plans to address the particular challenges associated with decarbonising rural homes that remain dependent on oil (kerosene) and other fossil fuels for heating; and whether his Department is developing a transitional pathway for households for which immediate installation of a heat pump and associated retrofit works may not be technically or financially feasible. [65877/26]
Amharc ar fhreagraThe Sustainable Energy Authority of Ireland's (SEAI) residential retrofit programmes are available to all households, including those reliant on oil and solid fuel for heating, to support the fabric upgrade of buildings as well as solar PV and heat pump installation.
The CSO’s latest home heating figures published in November 2025 show that in 2024, nationally 26% of people reported using kerosene as the main heat source, with this percentage rising to 41% in rural locations. The CSO report is available at Key Findings Household Environmental Behaviours - Energy Use 2024 - Central Statistics Office.
The Government’s National Residential Retrofit Plan, published in January 2026, introduced a range of new measures and increased grants making it easier to undertake retrofitting and decarbonise heating.
Specifically, for heat pumps:
(i) the heat pump system grant has been expanded for a maximum total grant value of up to €12,500; and
(ii) a new grant of €6,500 for replacement of an existing end-of-life heat pump that is out of warranty and where the in-situ heat pump has not previously been SEAI grant aided.
The National Retrofit Plan is delivering at scale and pace. Capital expenditure of over €2 billion has delivered over 287,000 home energy upgrades from 2019 to end August 2026, including over 39,500 fully-funded upgrades for households at risk of energy poverty under the Warmer Homes Scheme.
In 2026, a record capital budget of €640 million has been allocated to the SEAI's residential and community energy upgrade schemes, including the Solar PV Scheme.
We remain committed to ensuring that households benefit from Ireland's renewable energy transition and will continue to explore how best to integrate other technologies into our energy programmes.
44. Deputy Pádraig O'Sullivan asked the Minister for Climate, Energy and the Environment the schemes under his Department's remit funded from carbon tax receipts, including home energy upgrade grants, and the 2026 allocation to each; the estimated impact on those schemes of the deferral of the scheduled carbon tax increase from 1 May to 14 October 2026, and of any further deferral; and the way in which a resulting shortfall will be met. [65860/26]
Amharc ar fhreagraThe Programme for Government commits to using the carbon tax as a key tool to encourage a shift away from fossil fuels and to invest in a sustainable future. There are three areas within my Department that received funding from carbon tax revenue in Budget 2026.
Firstly, in the Residential /Community Retrofit area, the budget allocation for 2026 is a record €641 million (including €558 million from carbon tax). This will support over 73,000 home energy upgrades (including solar PV). This target includes 11,500 fully funded home energy upgrades under the Warmer Homes Scheme for households at risk of energy poverty. A record €340 million budget has been provided for this scheme for 2026.
There has been significant investment and year-on-year growth in home energy upgrades under the National Retrofit Plan. In the period 2019 to August 2026, the Sustainable Energy of Ireland schemes have provided c.€2 billion in support to homeowners and delivered over 287,000 home energy upgrades, including over 39,500 fully funded upgrades to households at risk of energy poverty under the Warmer Homes Scheme. Earlier this year, Government published a National Residential Retrofit Plan, including an enhanced set of measures to increase the delivery of home energy upgrades.
Secondly, the Just Transition Fund provides funding to local and community-led projects which are implementing innovative plans to support the transition to a low carbon economy across a range of activities in the wider-Midlands region, following the cessation of commercial peat extraction. In 2026, in addition to EU and other Exchequer funding, €6 million in carbon tax revenue is being provided towards the cost of local and community-led projects as the region continues its transition.
Finally, the Green Climate Fund, which is the world’s largest multilateral climate fund, is mandated to support developing countries. Ireland committed €40 million to the Fund in 2023. This contribution is being provided over four years, with €5 million provided in 2023; €15 million provided in 2024 and 2025; and €5 million to be provided 2026. €2 million of each year’s payment has been funded from carbon tax revenues.
Any potential decisions in relation to carbon tax will be assessed as part of the normal Budgetary process.
46. Deputy Matt Carthy asked the Minister for Climate, Energy and the Environment if he, or his senior officials, have had any meetings with National Waste Collection Permit Office since March 2025; the issues discussed at any such meeting; and if he will make a statement on the matter. [65950/26]
Amharc ar fhreagraThe National Waste Collection Permit Office (NWCPO), hosted by Offaly County Council, is the designated Nominated Authority for the processing and review of all waste collection permits issued within the State.
My Department is in regular contact with the NWCPO including meetings, fora and steering committees to discuss topics including, but not limited to, the operation of the waste collection market in Ireland, Waste Recovery Levy collection, and implementation of relevant actions in the Waste Action Plan for a Circular Economy.
For example, my officials were part of the steering group for the study commissioned by the NWCPO, into incentivised charging in the waste collection market, with the purpose of examining what changes could be made to the permitting system for waste collectors to fully incentivise waste prevention and improved source segregation practices by their customers to minimise their waste collection bills.
An integral part of the role of the NWCPO is collecting and reviewing the annual returns of each authorised waste collection company to ensure continuing compliance by operators with the conditions attached to the various waste collection permits and to monitor how the waste collection market more generally is operating.
These permits include a requirement that waste collection charging systems should incentivise customers to source segregate their waste. Terms and conditions of individual waste collection contracts, including pricing plans for the provision of bins, are matters between the waste collection companies and their customers, subject to compliance with the terms of their NWCPO permit. All such permits can be viewed in full on nwcpo.ie.
47. Deputy John Clendennen asked the Minister for Climate, Energy and the Environment the role he envisages for sustainable bio-liquids, renewable liquid fuels and other lower carbon heating solutions in reducing emissions from rural homes during their transition away from fossil fuel heating; and whether such fuel options could provide an interim decarbonisation pathway for such households. [65878/26]
Amharc ar fhreagraThe Government recognises that sustainable bio-liquids, renewable liquid fuels and other lower-carbon heating solutions may have an important role to play in reducing emissions from rural homes as part of the transition away from fossil fuel heating.
The Sustainable Energy Authority of Ireland assessed a range of decarbonisation options for homes and businesses, including heat pumps, district heating, liquid biofuels such as Hydrotreated Vegetable Oil (HVO), biomass and biogas. The study concluded that electric heat pumps represent the optimal pathway for decarbonising building heat, with district heating also expected to make a significant contribution. However, it also recognised that sustainable bioenergy may have a role in buildings where alternative options are required.
This is particularly relevant in the case of some rural dwellings where factors such as building age, location, construction type or the cost of deep energy upgrades may make the deployment of heat pumps or connection to district heating networks more challenging. In such circumstances, sustainable bio-liquids, renewable liquid fuels, biomass, biogases or other lower-carbon heating technologies may provide viable decarbonisation options.
The Programme for Government 2025 includes a commitment to target older homes that continue to rely on oil-fired heating systems for transition to renewable heating solutions and to consider the use of sustainable biofuels to reduce emissions from existing home boilers where deep retrofits are not possible in the short term. In that context, sustainable biofuels such as HVO may have potential to act as an interim decarbonisation pathway for certain households while longer-term solutions are being developed or become more feasible.
My Department is also progressing the introduction of a Renewable Heat Obligation which will require suppliers of fossil heating fuels to ensure that a proportion of the energy they supply is renewable. Under current proposals, renewable fuels that meet the sustainability criteria of the Renewable Energy Directive, including HVO and other sustainable bioliquids, will be eligible under the scheme.
While heat pumps and district heating remain the principal long-term solutions for decarbonising heat, the Government recognises that sustainable bio-liquids and other renewable heating fuels may have a complementary role in supporting emissions reductions, particularly in rural homes where alternative decarbonisation options are not currently practical or economically feasible.
49. Deputy Cathy Bennett asked the Minister for Climate, Energy and the Environment the current number of consumers in arrears regarding electricity bills; and the cadence at which such data is reported to Government. [65975/26]
Amharc ar fhreagraRegulation of retail energy markets is solely a matter for the Commission for Regulation of Utilities (CRU) since the enactment of the Electricity Regulation Act 1999 and subsequent legislation. However, officials from my Department correspond with the CRU on an ongoing basis to track developments in retail and wholesale energy markets, including arrears levels, among other indicators.
Arrears data is published by the CRU on a monthly basis. As arrears data operates with a two-month time lag due to the way suppliers report these figures to the CRU and the need to validate the data, the latest published arrears figures are for July 2026.
The latest data from the CRU shows that 14% of electricity customers were in arrears in July 2026 (322,234). 8% or 192,756 electricity customers were in arrears for over 90 days in July 2026.
The Deputy may wish to engage directly with the CRU in relation to the matters raised. The CRU provides a dedicated email address, oireachtas@cru.ie, for Oireachtas members which enables them to raise questions on general energy regulatory matters.
50. Deputy Ruairí Ó Murchú asked the Minister for Climate, Energy and the Environment the steps that are being taken to reduce the applications backlog in the warmer homes scheme. [65851/26]
Amharc ar fhreagraThe Warmer Homes Scheme aims to improve the energy efficiency and warmth of homes owned by people at risk of energy poverty by providing fully funded retrofits. The scheme is operated by the Sustainable Energy Authority of Ireland (SEAI) on behalf of my Department and is funded through the carbon tax revenues and the European Regional Development Fund.
The scheme targets support to those on the lowest incomes who are living in the least efficient homes so that the resources available can have the greatest impact in addressing energy poverty. Over 8,100 homes were upgraded last year, 109% of the annual target.
Over 6,800 upgrades were completed under the scheme to end August 2026, an increase of 38% on the same period last year. For the first half of the year the average waiting time from application to contractor allocation under the scheme was 15 months. The overall waiting time from application to works completed was 23 months
A range of measures have been introduced by my Department and the SEAI to reduce overall waiting times including the establishment of a new €1.2 billion contractor panel this year with additional contractors. This will support continued growth with a focus on scale, quality and output under the scheme.
The SEAI has also developed a Waiting List Action Plan with the objective of reducing the number of clients waiting for an upgrade, ensuring prioritisation of the worst performing homes, and improving efficiencies across the scheme.
To help maximise delivery and continue to improve waiting times, Budget 2026 provided record funding of €340 million for the Warmer Homes Scheme, with a target of 11,500 fully funded home upgrades for 2026.
51. Deputy Naoise Ó Cearúil asked the Minister for Climate, Energy and the Environment the progress made in implementing the requirement that new data centre developments match at least 80% of their electricity demand with new renewable generation. [65914/26]
Amharc ar fhreagraThe Commission for Regulation of Utilities (CRU) is responsible for electricity connection policy. The CRU is an independent regulator and accountable to a Committee of the Oireachtas. Planning, building, safely operating and maintaining the electricity system are functions which are assigned to the respective Distribution and Transmission System Operators, who are independent of me as Minister in the exercise of their respective functions . They are regulated by CRU.
The requirement for new data centre connections needing to meet at least 80% of their annual electricity demand with new additional renewable electricity generated in Ireland is contained in the CRU’s latest Large Energy User connection policy which provided a clear pathway for future grid connections while addressing security of supply, system constraints, grid support and renewable energy objectives.
In May of this year Eirgrid and ESBN published a new Data Centre Engagement and Connection Application Process which operationalised and introduced a structured and criteria-based approach for future data centre connections in compliance with the directions in the CRU Decision, including specific requirements for demonstrating a credible pathway to achieving 80% renewable electricity.
This is an important step in building on Ireland’s approach to successful and continued sustainable data centre development. It provides clarity to industry and ensures access is effectively targeted so that projects have a clear pathway for development that will provide real and tangible benefits for the Irish State.
Government is committed to supporting the sustainable growth of data centres and achieving the twin objective of decarbonisation and digitalisation including through our Large Energy User Action Plan which will further guide the sustainable development of data centres and other strategically significant energy intensive industries, in alignment with Ireland’s decarbonisation objectives and growing the knowledge-based economy.
Each of these organisations have a dedicated email address for Oireachtas members. As such the Deputy may wish to engage with EirGrid, ESBN and CRU directly via oireachtas@eirgrid.ie , oireachtas@esb.ie and oireachtas@cru.ie
53. Deputy Brendan Smith asked the Minister for Climate, Energy and the Environment if it is proposed to implement additional measures that would assist in the reduction of littering in public places and along roads throughout the country; and if he will make a statement on the matter. [65864/26]
Amharc ar fhreagraUnder the Litter Pollution Act 1997, primary responsibility for management and enforcement responses to litter pollution lies with local authorities. It is a matter for each local authority to determine the most appropriate public awareness, enforcement, and clean-up actions in relation to litter taking account of local circumstances and priorities.
Notwithstanding this fact, I have recently announced a package of measures to support communities in combating litter, including a new €250,000 dog fouling fund for local authorities in addition to the €750,000 I have already made available in 2026 to support local authority efforts to tackle litter through the Anti-Litter & Anti-Graffiti Awareness Grant Scheme. The fine for litter offences has also been increased from €150 to €250 as of 1st September while the Regional Waste Management Planning Offices have also rolled out a nationwide anti-litter awareness campaign – 'Bin it or bring it home' supported by the Department. The Anti-Dumping Initiative plays a key role in tackling the issue of illegal dumping. €23 million in funding has been provided to date for 2,200 projects nationwide and for the removal of 26,000 tonnes of illegally dumped material. This is the tenth year of the ADI which is funded by the department through the Circular Economy Fund to support the local authority sector to take action in conjunction with local communities and other State Agencies to tackle the problem of illegal dumping across the country. Funding of €3 million is being available in support of the ADI in 2026. Full details of all projects supported (by year) since the introduction of the ADI are available at the following link: www.gov.ie/en/department-of-climate-energy-and-the-environment/publications/anti-dumping-initiative.
In addition, the Department continues to support a range of successful national and community-based initiatives that play a vital role in preventing and reducing litter. Through annual funding for programmes such as National Spring Clean, Picker Pals, the PURE Project and Irish Business Against Litter (IBAL), we are helping to foster greater public awareness, encourage positive behavioural change, and empower communities, schools and businesses to take an active role in protecting and enhancing their local environment.
54. Deputy Richard Boyd Barrett asked the Minister for Climate, Energy and the Environment if he has read a report (details supplied); and to outline his plans to deal with the increased costs of electricity for households as a result of data centre usage. [65815/26]
Amharc ar fhreagraI am aware of a report commissioned by Friends of the Earth regarding potential impacts of data centres on the electricity system and consumers. It highlights the importance of:
- accelerating renewable electricity transition;
- reducing reliance on gas-fired generation; and
- strengthening energy security.
Data centres, like all large energy users, must operate within the boundaries of Ireland’s climate legislation, carbon budgets and energy security requirements. The Commission for Regulation of Utilities’ Large Energy User Connections Policy and the Government’s Large Energy User Action Plan (LEAP) establish a framework for new large energy users while protecting security of supply and supporting Ireland’s renewable energy ambitions. A key objective of LEAP is to ensure that electricity customers, including households, are not exposed to costs associated with infrastructure developed specifically for large energy users.
The Government is focused on ensuring energy remains affordable for households. A €500 million package of fuel supports was agreed in addition to the initial €250 million in targeted supports announced in March, already among the largest (per capita) intervention of any EU Member State. Further protections are in place for customers facing difficulties with bills, including through the Additional Needs Payment.
In June 2025, the cross-Government National Energy Affordability Taskforce (NEAT) was established to develop a coordinated, long-term approach to energy affordability. NEAT is currently finalising an Energy Affordability Action Plan setting out measures to address energy affordability over the short, medium and long term. This work complements the Government’s ongoing investment in renewable energy, electricity networks and home energy upgrades, to deliver reductions in household energy costs.
55. Deputy Joe Neville asked the Minister for Climate, Energy and the Environment the measures his Department hopes to introduce as part of the budget to reduce energy costs for businesses. [65852/26]
Amharc ar fhreagraAs the Deputy will appreciate, it would not be appropriate to pre-empt the outcome of upcoming budget discussions.
However, addressing energy affordability is a priority for me and for this Government. In June of last year, my Department established the National Energy Affordability Taskforce (NEAT), which I chair, to identify, assess and implement measures that will enhance energy affordability for households and businesses while delivering key renewables commitments, and protecting security of supply and economic stability.
The NEAT continues to work intensively on an Energy Affordability Action Plan to be submitted to Government in the coming weeks. Publication of the Action Plan will follow approval by Government. This Action Plan is focused on short, medium and longer term measures to support households and businesses in meeting their energy costs and will be built around 4 key pillars:
• addressing the price of energy;
• sustainable demand and enhancing flexibility;
• addressing energy poverty and customer protections; and
• energy affordability for businesses.
To facilitate this robust and coordinated cross-Government response, a number of NEAT subgroups, including one on energy affordability for business, have been established. The business subgroup brings together officials from a wide range of Government Departments and Agencies. A period of intensive engagement to refine options for consideration by the Taskforce has concluded with each of the subgroups meeting intensively over the past months.
This work has been supported by structured engagement with relevant external stakeholders. This included a targeted stakeholder consultation session with business representative organisations on 9 June. Organisations represented included IBEC, ISME, Failte Ireland, Ireland Electrified, and Chambers Ireland.
56. Deputy Joe Cooney asked the Minister for Climate, Energy and the Environment the number of grants that have been awarded for geothermal heat pump systems, by county, for each of the years 2024, 2025 and to date in 2026; and the actions his Department is taking to raise awareness of these systems and increase the numbers of such grants. [65883/26]
Amharc ar fhreagraThe Sustainable Energy Authority of Ireland (SEAI) manage a number of residential and community energy upgrade grant support schemes on behalf of my Department. The SEAI does not collect data on the type of heat pump installed for the majority of its schemes, including One Stop Shop, Community Energy Grant and Business grant schemes. A very small number of geothermal heat pumps have been grant-aided under the SEAI’s Better Energy Home scheme. See table below.
Geothermal heat pumps are more suited to buildings with large energy demands for heating and cooling, such as in retail, leisure centres and hospitals. My Department is a funding partner of the GEMINI project (Geothermal Energy Momentum in Ireland and Northern Ireland), a €20M cross-border initiative funded by the SEUPB and PEACEPLUS that will run from 2024 until 2028. Several demonstrator geothermal heat pump projects are planned under GEMINI, including decarbonising Sligo Regional Sports Centre with a shallow geothermal heat pump system. Outcomes from the GEMINI project will help public bodies with large energy demands for heating and cooling better assess the case for geothermal heat pumps.
The Health Service Executive’s (HSE) Pilot Energy and Decarbonisation Pathfinder Project, in partnership with the SEAI, includes the installation of a hybrid geothermal system at Cavan General Hospital.
Geothermal Heat Pump Installs on BEH
|
County |
2024 |
2025 |
2026 (to date) |
|
Carlow |
0 |
2 |
0 |
|
Cavan |
0 |
1 |
1 |
|
Clare |
0 |
0 |
0 |
|
Cork |
6 |
8 |
1 |
|
Donegal |
18 |
10 |
19 |
|
Dublin |
1 |
4 |
1 |
|
Galway |
6 |
2 |
2 |
|
Kerry |
5 |
0 |
1 |
|
Kildare |
1 |
2 |
3 |
|
Kilkenny |
1 |
2 |
1 |
|
Laois |
0 |
0 |
0 |
|
Leitrim |
0 |
2 |
1 |
|
Limerick |
0 |
0 |
1 |
|
Longford |
1 |
0 |
1 |
|
Louth |
2 |
2 |
4 |
|
Mayo |
4 |
2 |
4 |
|
Meath |
1 |
3 |
1 |
|
Monaghan |
0 |
4 |
2 |
|
Offaly |
0 |
0 |
2 |
|
Roscommon |
1 |
1 |
1 |
|
Sligo |
3 |
4 |
4 |
|
Tipperary |
1 |
0 |
0 |
|
Waterford |
0 |
0 |
0 |
|
Westmeath |
0 |
0 |
2 |
|
Wexford |
1 |
2 |
0 |
|
Wicklow |
0 |
4 |
0 |
57. Deputy Richard Boyd Barrett asked the Minister for Climate, Energy and the Environment the additional supports he is considering to help families cope with increasing home-heating oil prices. [65816/26]
Amharc ar fhreagraOil markets are responding to developments arising from the conflict in the Middle East and the Government is extremely conscious of the impact that the global spike in oil prices is having on people and businesses across the country. Lower relative taxes, compared to petrol and diesel, make Irish home heating more sensitive to price increases in the international wholesale benchmark price.
In terms of home heating oil, I provided for a reduction in the NORA levy from 2 cent per litre to a nominal amount from 1 April to 31 October. The planned carbon tax increase (due 1 May) has been deferred until Budget 2027. In addition, the Fuel Allowance season was extended by four weeks until 1 May 2026 in response to rising fuel costs. The measures provided additional support to approximately 470,000 households. Furthermore, the weekly Fuel Allowance rate was increased to €38 from January 2026, and eligibility was expanded to include recipients of the Working Family Payment. Further information is available on https://www.gov.ie/en/department-of-climate-energy-and-the-environment/publications/energy-supports/.
The National Energy Affordability Taskforce has been established by Government to identify, assess and implement measures that will enhance energy affordability for households and businesses while delivering key renewable commitments and protecting security of supply and economic stability.
The NEAT continues to work intensively on an Energy Affordability Action Plan which will be focused on short, medium and longer term measures to support households and businesses in meeting their energy costs. It will be built around 4 key pillars:
• addressing the price of energy;
• sustainable demand and enhancing flexibility;
• addressing energy poverty and customer protections; and
• energy affordability for businesses.
The Action Plan will be submitted to Government in the coming weeks and will inform measures for consideration in Budget 2027. Publication of the Action Plan will follow approval by Government.
63. Deputy Naoise Ó Cearúil asked the Minister for Children, Disability and Equality the progress that has been made towards the Programme for Government's commitments to further reduce childcare costs for families; the measures implemented to date to improve affordability; the planned measures to improve affordability and availability of childcare for families. [65916/26]
Amharc ar fhreagraI have always been clear in communicating that the €200 per month Programme for Government commitment is to be achieved over the lifetime of this Government.
Shaping the Future: The Early Years Action Plan, Phase 1 report (published last December) 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). Two of the main objectives of Shaping the Future are to reduce parental fees to a maximum of €200 per month over the lifetime of the Government and to increase the supply of places, strengthening supply-side funding to support services’ sustainability and staff wages, while introducing State-led facilities to complement other measures to increase capacity.
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.
The consultation process, which has taken place throughout this year, has had a number of channels designed to facilitate the participation of a wide range of stakeholders. The final stage in the consultation will be a national forum on 23rd September, which will build on insights from surveys, local consultation events, and stakeholder engagement and will help inform future policy direction. Results of this consultation, and additional analysis, will inform Phase 2 of Shaping the Future.
Phase 2, which will be published later this year, will set out actions to be undertaken from 2027 through to the end of 2029.
A number of steps have already been taken in 2025 and 2026 to reduce the costs of ELC and SAC for parents. 2026 actions include further reduction in some of the highest fees paid by parents by lowering the maximum fees that Core Funding Partner Services can charge. These latest maximum fee caps, which apply to all Core Funding Partner Services, place a limit on the maximum fees that can be charged. Under the new maximum fee caps, the highest possible cost for a typical full day place of 45 hours per week is dropping from around €198 per week to €183.70 per week, with the universal subsidy under the National Childcare Scheme. Higher subsidies are available for many parents, depending on their level of income and the age and number of children in their family.
In addition, from September 2026, out of pocket costs for lower-income families have been reduced through changes to the National Childcare Scheme. These measures include:
- An increase to the lower (base) income threshold of the income-assessed subsidy from €26,000 to €34,000, to ensure that families with incomes below the relative income poverty line receive the maximum subsidies.
- An increase to the upper income threshold (income limit) of the income-assessed subsidy from €60,000 to €68,000, to extend income-assessed subsidies to more families.
- An increase to the multiple child deduction (MCD) component of the income-assessed subsidy for families with two children under the age of 15 from €4,300 to €5,500, and for families with three or more children under the age of 15 from €8,600 to €11,000.
In Budget 2027 I hope to build on these steps as we continue the journey towards the objective of reducing parental fees to a maximum of €200 per month.