Minister Canney welcomes new childcare fee caps and record €480 million investment in early learning and childcare
Seán Canney TD, Minister of State for International and Road Transport, Logistics, Rail and Ports and Leader in Cabinet of the Independent Ministers, has welcomed the announcement of new maximum fee caps for early learning and childcare services participating in the State’s Core Funding scheme, which will reduce childcare costs for families while providing record support for providers.
From September, the highest possible upfront cost for a full-day childcare place of between 40 and 50 hours per week will fall from around €198 per week to €183 per week for families benefiting from the universal subsidy under the National Childcare Scheme. Higher subsidies are available for many families depending on their income and the age and number of children in their household.
The new fee caps will apply to both new and existing services participating in Core Funding and are aimed at further improving affordability for parents while helping to standardise fees across the sector.
Welcoming the announcement, Minister Canney said: “This is a very positive development for families. Childcare remains one of the biggest costs facing many parents and any measure that helps reduce that burden is to be welcomed.”
“The reduction in the highest possible upfront cost of a full-time childcare place will make a real difference for families, while the continued investment in the sector will help ensure children can access high-quality early learning and childcare services in their communities.”
The measures are being introduced alongside record Core Funding of €480 million for the coming programme year, an increase of more than €90 million on the current allocation. The funding will support more than 4,600 early learning and childcare providers nationwide with staffing and operating costs in return for maintaining affordability measures for families.
Approximately 12% of services will be required to reduce at least one fee. However, the majority of parents are already paying below the new maximum fees and will continue to benefit from the fee freeze introduced in 2022.
Minister Canney said the announcement reflects the Government’s continued commitment to making childcare more affordable and accessible.
State investment in early learning and childcare has more than doubled in recent years, increasing from €730 million in 2022 to €1.524 billion in 2026. The additional Core Funding announced this week includes support for improvements in pay across the sector, subject to the independent Joint Labour Committee process.
The new fee caps and increased Core Funding will come into effect from September 2026.