PRESS RELEASE
9 October 2026
Minister Foley releases further details of reductions in early learning and childcare costs for families in Budget 2027
Minister for Children, Disability and Equality Norma Foley TD has released further details of the impact of reductions in early learning and childcare costs for families in Budget 2027.
A key priority of the Budget is making early learning and childcare more affordable for families.
The maximum fees that can be charged by providers in Core Funding will be reduced for children in both part-time and full-time care.
The National Childcare Scheme subsidy will also increase for children in early years, junior infants and senior infants from September 2027, given the higher costs faced by this group on average.
The case studies below will give examples of the savings this will generate for families with children in early learning and childcare places for different lengths of time each week.
Minister Foley said:
“Budget 2027 contains an early learning and childcare package to improve affordability for parents. The increased universal subsidies under the National Childcare Scheme, the changes to income thresholds for income-assessed subsidies, and the cuts to the maximum fees for Core Funding Partner Services will reduce costs for many families.
Budget 2027 will also provide funding to increase access to places, to support providers with a record level of Core Funding and to support the recruitment and retention of high-quality early years educators and school-age childcare practitioners.”
Parents of children in early years and up to senior infants who are enrolled in services participating in Core Funding can benefit from the new fee caps being introduced next September. Over 20 percent of providers will be required to reduce at least one of their fees.
Even if their existing fees are below the new fee caps, and will not be reduced as a result, these parents will benefit from the forthcoming increase in the universal subsidy under the National Childcare Scheme from €2.14 to €2.50 per hour, as well as the increase in the base income-threshold and multiple child deductions for income-assessed subsidies.
Parents of children in first class and upwards who are enrolled in Core Funding Partner Services for school-age childcare services can also benefit from the new fee caps being introduced next September. This will be where their current fees are in excess of the new fee caps.
Here are some examples of the impact that the changes announced in Budget 2027 will make.
- For a family who is availing of a place for a child up to senior infant class, for 25 hours per week, their costs are currently capped at €458 per month if they receive 25 hours of universal subsidies. As part of the early learning and childcare package in Budget 2027, their bill will reduce to no more than €350 a month from next September. This means that the family will make an annual saving of €1,296 over 48 weeks.
- For a family who is availing of a full-time place for a child up to senior infant class, five days a week, for 45 hours (e.g. during holiday periods for school-age children), their costs are currently capped at €735 per month taking universal subsidies into account. As part of the early learning and childcare package in Budget 2027, their bill will reduce to no more than €550 a month from next September – or by 25%. This means that the family will make an annual saving of over €2,200 over 48 weeks.
- For a family who is availing of a full-time place for a child up to senior infant class, five days a week, for 50 hours, their costs are currently capped at around €959 per month taking universal subsidies into account. As part of the early learning and childcare package in Budget 2027, their bill will reduce to no more than €750 a month from next September. This means that the family will make an annual saving of over €2,500 per year over 48 weeks.
- For a family who is availing of a full-time place for a child who is in first class or higher, five days a week, for 45 hours during school holidays, their costs are currently capped at €183.70 per week taking universal subsidies into account. While they will not qualify for increased universal subsidies, the fee caps in the early learning and childcare package in Budget 2027 means their bill will reduce by 16% to no more than €137.50 a week from next September.
- For a family who is availing of a full-time place for a child up to senior infant class, five days a week, for 45 hours (e.g. during holiday periods for school-age children) paying an average (median) fee of €800 per month, their costs are currently capped at €414.80 per month if they receive 45 hours of universal subsidy per week. As part of the early learning and childcare package in Budget 2027, their bill is below the new maximum fee caps but it will reduce to €350 a month from next September due to increased universal subsidies. This means that the family will make an annual saving of over €777 over 48 weeks.
The examples provided above are for families accessing the universal subsidies under the National Childcare Scheme. Families on lower incomes can qualify for higher, income-assessed subsidies under the National Childcare Scheme.
As part of Budget 2027, the base income threshold for families for the National Childcare Scheme will be raised from €34,000 to €38,500 as an anti-poverty measure for children, allowing more families to benefit from the maximum subsidies under the Scheme from September 2027.
The Access and Inclusion Model supports for children with disabilities in the Early Childhood Education and Care (ECCE) programme will be extended to children under three years of age from September 2027, benefitting an estimated 1,000 young children.
Core Funding for over 4,600 providers of early learning and childcare will increase by more than €170m, to over €650 million for the next Programme year, commencing in September.
Included in that is funding in the region of €50 million specifically ringfenced to support new negotiations by the independent Early Years Services Joint Labour Committee, for another Employment Regulation Order for early years educators and school-age childcare practitioners from September.
Further information:
| Fee band (for Core Funding Partner Services) | Current Maximum Weekly Fee Cap for Providers | Maximum Weekly Fee Cap for Providers From September 2027 | Example weekly National Childcare Scheme Universal subsidy for parents | Example weekly National Childcare Scheme Universal subsidy for parents of children up to senior infants from September 2027 |
| <10 hours | €56 | €50 | €10.70 (5 hours) | €12.50 (5 hours) |
| 10<20 hours | €112 | €100 | €32.10 (15 hours) | €37.50 (15 hours) |
| 20<30 hours | €168 | €150 | €53.50 (25 hours) | €62.50 (25 hours) |
| 30<40 hours | €224 | €200 | €74.90 (35 hours) | €87.50 (35 hours) |
| 40<50 hours | €280 | €250 | €96.30 (45 hours) | €112.50 (45 hours) |
| 50 hours or more | €336 | €300 | €96.30 (45 hours) | €112.50 (45 hours) |
Maximum parental payment for families on universal subsidy
Current maximum parental payment for 45-hour place for a child on universal subsidy
| Children up to end of Senior Infants | 1st Class children upwards | |||
| Weekly | Monthly | Weekly | Monthly | |
| Maximum fee for 40-50 hour place | €280 | €1,120 | €280 | €1,120 |
| National Childcare Scheme universal subsidy for 45 hours | €96.30 | €385.2 | €96.30 | €385.2 |
| Parent payment | €183.70 | €734.80 | €183.70 | €734.80 |
Note: in the table, a month refers to a 4-week period.
Future maximum parental payment for 45-hour place for a child on universal subsidy (from September 2027)
| Children up to end of Senior Infants | 1st Class children upwards | |||
| Weekly | Monthly | Weekly | Monthly | |
| Maximum fee for 40-50 hour place | €250 | €1000 | €250 | €1000 |
| National Childcare Scheme universal subsid for 45 hours | €112.50 | €450 | €96.30 | €385.2 |
| Parental payment | €137.50 | €550 | €153.70 | €614.80 |
| Saving | €184.80 per month
|
€120 per month | ||
Note: in the table, a month refers to a 4-week period.
- 25% reduction in maximum co-payment for children on universal subsidy up to end of Senior Infants
- 16% reduction in maximum co-payment for 1st class children receiving 45 hours of universal subsidy
- Co-payments for families receiving an income assessed subsidy are lower.
Co-payment for families on universal subsidy in a service charging the average fee
Current parental payment for a child on the median fee claiming 45-hours universal subsidy (current)
| Children up to end of Senior Infants | 1st Class children upwards (out of term) | |||
| Average (median) fee | €200 | €800 | €175 | €700 |
| National Childcare Scheme universal subsidy for 45 hours | €96.30 | €385.2 | €96.30 | €385.20 |
| Parent payment | €103.70 | €414.80 | €78.70 | €314.80 |
Future parental payment for a child on the median fee claiming 45-hours universal subsidy (from September 2027)
| Children up to end of Senior Infants | 1st Class children upwards (out of term) | |||
| Average (median) fee | €200 | €800 | €175 | €700 |
| National Childcare Scheme universal subsid for 45 hours | €112.50 | €450 | €96.30 | €385.20 |
| Parent payment | €87.50 | €350 | €78.70 | €314.80 |
| Saving | €64.80 per month | |||
- 16% reduction in co-payment for median fee for children receiving 45 hours of universal subsidy up to end of Senior Infants
- No change in co-payment for 1st class children upwards for families on universal subsidy in an average-fee service.
- Co-payments for families receiving an income assessed subsidy are lower.
ENDS