Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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1892. To ask the Minister for Children, Disability and Equality if she will provide an updated national breakdown of average monthly childcare costs, by county; her views on recent reports that these now exceed average mortgage repayments in many areas; if she considers this compatible with the Government’s stated objective of supporting working families; and if she will outline any plans for further subsidy increases or structural reforms to address the affordability crisis. [44922/25]

Norma Foley (Kerry, Fianna Fail)
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Monthly Childcare Costs

Each year Pobal compiles data from Early Learning and Care (ELC) and School Age Childcare (SAC) providers as part of the Early Years Sector Profile.

Early Learning and Care

The most recently published fee data for the 2023/24 programme year indicates that the average (median) weekly fee per child before any government subsidies was €190.00 for full day early learning and care. It is important to note that a universal subsidy which is not means tested is available to all parents using the National Childcare Scheme and provides €2.14 per hour for a maximum of 45 hours per week (ie up to €96.30 per week). Alternatively, there is an income-assessed subsidy which is means tested and will be calculated based on a family’s individual circumstances. Rates will vary depending on the level of family income, the child’s age and educational stage, and the number of children in the family.

The fee data shows that there is a large degree of county-level variation in fees charged by services. Historically, fees have been higher in urban areas and along the East coast. The highest fees for full day provision in 2023/24 were charged by services in Dublin – Dún Laoghaire-Rathdown, where the average full-time fees were reported at €258.57. Whereas the lowest full day fees (€150.00) were in Leitrim.

Table 1. Service reported average* fees by county for early learning and care

*Average is calculated as the median value for all services

Compared to data from the 2022/23 sector profile, the national average fees have remained unchanged. Full-day care has remained at €190.00, part-time care has remained at €110.00 and sessional care has remained unchanged at €75.00.

School Age Care

The most recently published fee data for the 2023/24 programme year indicates that the average (median) weekly fee per child before subsidies was €165.00 for out of term school age care. The highest fees for out of term school age care was charged by services in Dublin – Dún-Laoghaire-Rathdown and in Dublin – Fingal, both at €200.00. Whereas the lowest out of term fees were in Leitrim at €132.50.

Table 2. Service reported average* fees by county for school age care

*Average is calculated as the median value for all services

Compared to data from the 2022/23 sector profile, the national average fees for both school age care categories have remained unchanged. The out of term weekly fee has remained unchanged at €165.00 and the hourly rate at €5.00.

Data from the 2024/245 AEYSP is currently being prepared for publication and the results will be published on the Early Learning and Childcare data website in due course, www.pobal.ie/childcare/fees/. The Fees section of the website provides information on early leaning and care fees, school-age care fees, and fee trends.

Regarding efforts to improve affordability, significant progress has been made in recent years.

The Early Childhood Care and Education Programme (ECCE) provides two years of pre-school without charge and enjoys participation rates of 96% each year. 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) compliments the ECCE programme, providing subsidies – both universal and targeted – to reduce the costs to parents for children to participate in Early Learning and Care (ELC) and School-Age Childcare (SAC). The minimum NCS subsidy has steadily risen over previous Budgets with a minimum of €2.14 per child per hour now available. These increases have also been paired with extensions to eligibility. Higher subsidies are also available to families on lower incomes.

Additionally, 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 better support families. Any changes to the NCS will be informed by a thorough review of international literature and comprehensive stakeholder engagement.

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.

In June, I announced the detail 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 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.

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 per cent of services signed up to programme year 3.

Work is under way to develop an Action Plan to build an affordable, high-quality, accessible early learning and childcare system, informed by stakeholder consultation. This will set out future steps to reduce the cost of early learning and childcare further to €200 per month over the lifetime of the Government.