Measures to cut the cost of childcare in Budget 2027 are to be targeted at families with younger children, including those in aftercare during their first two years in primary school.
Families with a young child attending a creche full-time could save as much as €1,000 a year per child under the plans.
Coalition leaders met for several hours on Sunday as part of efforts to finalise details of Tuesday’s budget.
While talks on the childcare package are expected to continue today, The Irish Times understands that subsidies available under the National Childcare Scheme are to go up for younger children up to and including those attending senior infants.
RM Block
The changes would take effect from September 2027.
Meanwhile, under the plans from Minister for Children Norma Foley, there are due to be separate cuts to the maximum fees that all creches and aftercare services can charge. It means parents of older children could also be in line for at least some reduction in fees for after school-care.
Funding will also be made available to increase pay for early-years educators.
Senior Government figures have promised help with childcare costs in Budget 2027, including progress towards fulfilling the pledge of reducing costs to €200 per month per child by the end of the Coalition’s time in office.
Taoiseach Micheál Martin, Tánaiste Simon Harris and Minister of State Seán Canney, along with Minister for Public Expenditure Jack Chambers, were all involved in the talks on Sunday.
Chambers told RTÉ that the Government “wants to make an impact when it comes to the affordability of childcare for Budget 2027″. He added that “a central focus as well is wider issues around cost of living”.
A €10-per-week increase in the State pension and other welfare payments are expected to be announced as part of the budget.
Another social protection measure understood to be agreed is a €500 cost-of-disability payment. A €5-per-week increase in fuel allowance is also expected.
[ Prospect of a €250 cut to student contribution fees unlikely ahead of Budget 2027Opens in new window ]
Over the weekend, the Taoiseach confirmed that welfare recipients and pensioners can expect a Christmas bonus payment this year.
As the energy crisis caused by the Iran war continues, Martin also signalled carbon tax increases on home-heating oil will be halted for the remainder of the Coalition’s time in office.
It is expected that the budget will include an income-tax package for workers. On inheritance tax, there is set to be an increase in the tax-free thresholds on the value of bequests across the three bands. However, sources said these increases will be “modest”.
On transport measures, there is to be a focus on funding more than 140 new public transport services next year. This will be facilitated through an increase in Public Service Obligation funding, with routes that are not commercially viable being subsidised. The expansion of routes will also be part-funded by fare increases from January.
Meanwhile, it is understood that Minister for Culture, Communications and Sport Patrick O’Donovan is to use part of his budget allocation to provide extra funding for the Arts Council.
It is also anticipated that Budget 2027 will include finding for the recruitment of 1,000 gardaí in 2027 as well as additional prison officers, with resources going to the International Protection Office for more staff and deportation flights.
Funding is also understood to be allocated for 400 new Defence Forces recruits and almost 100 new civilian staff.
On housing, one area of focus for Minister for Housing James Browne is ensuring necessary funding for the forthcoming Child and Family Homelessness Action Plan.
Last-minute negotiations are expected to continue today in advance of the budget being unveiled by Harris and Chambers on Tuesday afternoon.
