Aidan Farrelly (Kildare North, Social Democrats)
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1209. To ask the Minister for Children, Equality, Disability, Integration and Youth further to Parliamentary Question No. 555 of 27 May 2025, to provide an estimation of the cost to the exchequer for each €1 reduction in average weekly costs of full-day childcare; and if she will make a statement on the matter. [30259/25]

Norma Foley (Kerry, Fianna Fail)
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The Deputy has requested the cost of a €1 reduction in average weekly costs of full-day childcare.

This Department does not hold individualised fee data for parents as these are local agreements between parents and providers; instead a reduction in the average cost to parents is examined. The median weekly fee for full-day childcare in Ireland was €190 for the 23/24 programme year, as per the most recent Annual Early Years Sector Profile.

To estimate the cost of a €1 reduction in average weekly costs, an increase to the National Childcare Scheme universal subsidy was examined.

Currently all families with children attending a registered childcare provider or childminder can avail of €2.14 per child per hour towards their costs under the universal subsidy. This subsidy can contribute up to €96.30 per week for families availing of 45 hours of childcare per week.

A €1 reduction in weekly fees for families availing of the National Childcare Scheme would require an increase of the universal subsidy to €2.17 per hour. The ESRI SWITCH model was then used to estimate the quantum of this change and apply it to the Department's baseline NCS cost for 2025. The cost of the proposed change was estimated at €5.47m.

This estimate comes with a number of caveats. As this costing is based on a median fee, the impact of this change would vary based on the level of fees within services, patterns of usage and age of the child.

In addition, this costing is made on the basis of a static system; that is, the model assumes that the level of usage of eligible childcare does not increase or decrease. Any changes to subsidies may create a change in behaviour of families, for example, return to/increased labour force participation and use of formal ELC for the first time.