More families will be eligible for higher childcare subsidies under a Department of Children plan.
Currently, families can get full subsidies under the National Childcare Scheme if their household income is under €26,000. They can also receive a graduated level of subsidies if their income is between €26,000 and €60,000.
Universal subsidies are paid to all families regardless of income.
It is understood Minister for Children Norma Foley will bring a plan to Cabinet next week for these income limits to be increased at the higher and lower levels. It is not yet clear where the new income brackets will fall.
RM Block
The changes would take effect in September, 2026. According to a source, the Government aims to reduce childcare bills for “tens of thousands of families” with the step.
A Coalition pledge to reduce the cost of childcare to €200 per month per child is among the more ambitious features of the Government’s programme outlining the goals of its term.
The Budget contained a commitment to introduce new maximum-fee caps to benefit families paying the highest childcare bills. Details of the new caps will not be announced until early next year, once financial returns are received from childcare operators.
The plan being brought to Cabinet by Ms Foley will detail phase one of a new Early Years Action Plan. It is expected to contain steps the Government hopes will increase access to childcare while improving affordability and raising standards in the sector.
It will also contain details of funding to support a new employment regulation order for staff working in childcare.
In October, a new order for the sector increased minimum hourly rates of pay, with lower earners to be paid €15 per hour and graduate centre managers €20.25 per hour. The new rates apply to 35,000 workers, with expectations that about two-thirds of them will see their wages increased as a result of the change.
The plan is expected to include new measures to reduce red tape for childcare providers and parents. Ms Foley will also announce a public consultation process on the medium and long-term future of the early years sector.
This consultation will form part of the Government’s plan to make good on its pledge of €200-per-month childcare costs within its term of office. The second phase of the plan will be published in 2026, informed by the outcome of the consultation.
