Grace Boland (Dublin Fingal West, Fine Gael)
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2412. To ask the Minister for Children, Disability and Equality the timeline for the establishment of the National Agency for Early Learning and Childcare; the interim measures being taken to address the affordability crisis in childcare; and if she will make a statement on the matter. [42546/25]

Norma Foley (Kerry, Fianna Fail)
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On 29 March 2022 Government accepted the findings of the independent Review of the Early Learning and Childcare Operating Model in Ireland that a dedicated state agency is the optimal operating model for the early learning and childcare sector for the years ahead. It is envisaged that this state agency will undertake the functions carried out by Pobal Early Years (including Better Start), the City/County Childcare Committees, as well as current early years operational functions of the Department of Children, Disability and Equality (DCDE).

Significant progress has already been made in advancing this ambitious and transformative reform programme. DCDE is currently engaging with independent consultants Indecon who have been contracted to undertake the initial phase of research, analysis and stakeholder engagement to inform the design of the agency. This phase will comprise a detailed design of a new agency and an evidence-based cost projection for the establishment and annual operational costs of a new agency.

It is anticipated that this phase will be concluded in late 2025 with the production of a consolidated report on the design of the agency. A detailed costing exercise is also underway and is scheduled to conclude in late 2025 also. The work will culminate in a costed agency design, including the remit, organisational structure and service delivery model, which will be presented to Government for approval.

Regarding the point on affordability of childcare, the Early Childhood Care and Education (ECCE) Programme, which provides two years of pre-school without charge, enjoys participation rates of 96%. Over 70% of families on low income report that they would not be able to send their child to pre-school without this Programme.

The National Childcare Scheme (NCS) complements the ECCE Programme, providing subsidies - both universal and targeted - to reduce the costs to parents for children to participate in early learning and childcare. The Scheme is progressive in nature ensuring the highest levels of subsidies go to families that need them most . The NCS has undergone a number of enhancements in recent years to further improve affordability for parents. These include the extension of the universal subsidy to all children under 15 and two increases to the minimum hourly subsidy, which is now worth a minimum of €96.30 per week for 45 hours.

Record numbers of children and their families are now benefiting from the NCS. Almost 220,000 unique children benefited from an NCS subsidy in 2024.

Children in childminding settings that have come forward for registration, following changes to the childminder Tusla registration requirements last September, can also benefit from NCS subsidies.

An evaluation of the NCS is due to start this year. This evaluation will review how the Scheme has performed to date and identify potential enhancements that could be made to further improve affordability for families.

Core Funding has seen consistent increased State investment to the sector year on year and is set in year 4 to be worth over €390 million contingent on the establishment of new minimum rates of pay in the sector through updated Employment Regulation Orders. This is an increase of over 50% since the scheme began in September 2022 with an allocation of €259 million.

Last 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 also. Under these new fee caps, the fee for a full day place – of between 40-50 hours per week, the most common full day care operating hours – will be no more than €295 per week (before State subsidies under the National Childcare Scheme (NCS) and the ECCE programme are deducted), the fee cap for 50+ hours of care is €354. All of the fee caps will reduce the highest fees at each fee band in the country. The majority of services are already charging far less than the new maximum fees. This is an important step towards the reduction of childcare fees to €200 per month over the lifetime of this Government.

This latest measure builds on a range of supports already in place.