47,000 families to benefit from reduced childcare fees next year

Ottoline Spearman

The Government is updating the income thresholds for the National Childcare Scheme for the next school year.

From autumn 2026, the lower threshold will be increased to €34,000, with the upper threshold increased to €68,000.

This is the first of a number of steps being taken to try to achieve a maximum childcare cost of €200 month during the Government's lifetime.

It forms part of the Shaping the Future: Early Years Action Plan, launched on Wednesday.

The plan will also reduce the highest fees charged to parents across the country by lowering the maximum fees that Core Funding Partner Services can charge from September 2026.

The plan also aims to streamline administration and regulation through its Simplify and Support: Action Plan for Simplification.

The Government has said that the changes will benefit almost 47,000 families by providing them with additional subsidies.

Children's Minister Norma Foley has said that the Government are employing a "triangular approach". Speaking on Newstalk, she said: "I've always been very clear it is not just the affordability aspect. In tandem with that, we have to ensure that there are additional places made available.

"There would be no point in having affordable childcare if we didn't have the places available and if we didn't have the staff available to do the work.

"So it's a triangular approach and we're working on all three in tandem."

Childhood Services Ireland has welcomed the ambition for the sector, but said that any structural changes to the Early Childhood Education and Care system must co-created with service providers.

Director of CSI Stephanie Roy said: “Providers are not merely one stakeholder among many; they are the very infrastructure of childcare in Ireland. Our members are ready and willing to work with the Government to ensure a system that works for everyone, but we must be clear that affordability for parents cannot be pursued at the cost of provider viability."

The Federation of Early Childhood Providers is criticising the plan. Speaking on Newstalk, Chair Elaine Dunne said the industry is struggling: "We're happy for the parents to get whatever they need. But unfortunately for us, for a lot of us that are stuck in historical fee freezes, we're being forced to pull out of core funding to put up our fees.

"If you have a little corner shop, you can put up your prices and then that absorbs your costs. But a lot of us are stuck in 2016, 2017 fee freezes."