76. Deputy Joe Neville asked the Minister for Children, Disability and Equality if she will further reduce the new cap of €734 a month per child on childcare; the timeframe for when any further reductions will be introduced; and if she will make a statement on the matter. [47284/26]

Core Funding has seen consistent increased State investment to the sector year-on-year. When first introduced in 2022, Core Funding had an annual allocation of €259 million which has increased each year since and has exceeded €390 million for the current fourth year of the Scheme. This represents an increase of over 50% in Core Funding in three years.

€21.4 million in brand new funding for a full programme year has been secured to support providers in adhering to the fee management conditions including reductions in the maximum fee caps in the 2026/2027 programme year. This will guarantee that Core Funding’s monetary protections will continue to be passed on to families while ensuring sustainability and stability for the sector.

Maximum fee caps were first introduced for new entrants to the Scheme in September 2024. They were then lowered and extended to all Partner Services in September 2025. Recently, it was announced that the maximum fee caps will be reduced further for Core Funding programme year 2026/2027, beginning September 2026.

These latest maximum fee caps on all Partner Services will place a limit on the maximum fees that can be charged across all types of provision. The fee for a full day place of between 40 hours and less than 50 hours per week, will be no more than €280, with a maximum fee of €336 for 50 hours of care or more. This is before State subsidies under the National Childcare Scheme, and the ECCE programme are deducted. By comparison the average fee for a typical full day place is significantly lower, at €197 per week.

Close to 90% of Partner Services already charge far less than the maximum fee caps and are therefore unaffected. Most of these services remain bound by the fee freeze, wherein they cannot increase their fees beyond the levels charged in September 2021.

It should also be noted that the figure of €734 provided by the Deputy is based on an assumed fee in Band E, available from 40 hours up to less than 50 hours per week across 4 weeks. Services are required to set their fees on a weekly basis, with the maximum fee cap at Band E of €280 being reduced to €183.70 per week after the deduction of NCS universal subsidies.

The Phase 1 report of Shaping the Future: the Early Years Action Plan was published on 17th December. The report sets out the next steps in the delivery of a number of Programme for Government commitments relating to Early Learning and Care (ELC) and School Age Childcare (SAC). A central objective of Shaping the Future is to reduce parental fees to an upper limit of €200 per month over the lifetime of the Government.

The Phase 1 report focuses on short-term actions to be undertaken in 2026 within the budgetary resources available for the year. In line with the Programme for Government commitment, a broad public consultation process is currently underway. Results of this consultation, as well as additional analysis, will inform Phase 2 of the Action Plan. Phase 2 actions will be published later in 2026 and will be undertaken from 2027 through to the end of 2029.

The Department is committed to continued engagement with parents and the sector to inform the further development of both the Core Funding fee management system and general Scheme policy.