Norma Foley (Kerry, Fianna Fail)

I thank the Deputy. Earlier this month, I announced the introduction of maximum fee caps for all partner services in core funding from September 2025. The fee freeze will remain in place for all partner services with fees below these caps. This is an important step towards the reduction of childcare fees to €200 per month over the lifetime of this Government.

Maximum fee caps were introduced for new services last year, and this September they will be extended to existing services. Under the new fee caps, the highest possible fees will be no more than €295 per week for a full day of 40 to 50 hours per week. Once the national childcare scheme subsidy is taken into account, the maximum fee for a parent in this situation will be less than €200 per week. This latest measure builds on a range of supports already in place.

The early childhood care and education, ECCE, programme provides two years of preschool without charge and has participation rates of 96%. The national childcare scheme complements ECCE, giving universal and targeted subsidies to reduce costs to parents. Recent improvements include the extension of the universal subsidy to children under 15 and two increases to the minimum hourly subsidy, now worth €96.30 per week for 45 hours. Almost 220,000 children benefited from a subsidy in 2024. Since last September, children in childminding settings can also benefit from national childcare scheme subsidies.

In addition, the fee management system introduced through core funding has made sure the investment in affordability is not absorbed by unnecessary fee increases. Core funding has enjoyed high participation rates to date, with 92% of services taking part. Preparations for the first Estimates process for this Government are under way and I am committed to bringing forward proposals to make further progress in this area. Work is also under way to develop an action plan to build an affordable, high-quality and accessible early learning and childcare system, informed by stakeholder consultation. This will set out future steps to reduce the cost of childcare further to €200 per month.

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