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Dáil

Written answer

Budget 2027

2937. Deputy Brian Stanley asked the Minister for Children, Disability and Equality for increased funding for the national childcare scheme in Budget 2026; the proposals to raise income thresholds for eligible applicants, to support affordability for families and ensure the scheme keeps pace with rising living costs; and if she will make a statement on the matter. [57686/26]

Comment on this
Norma Foley Minister for Children, Disability and Equality Fianna Fáil

The National Childcare Scheme (NCS) provides both universal and income-assessed subsidies to help parents to meet the cost of early learning and childcare. All families can receive a universal subsidy, but the highest subsides are provided to families with the lowest levels of income through the income-assessed subsidy.

In 2026, as committed to in Shaping the Future: the Early Years Action Plan, Phase 1 Report, the income-assessed thresholds for the NCS will increase this year, improving the affordability of early learning and childcare for up to 47,000 children from lower income families.

This investment will support lower income households to access higher subsidies to offset the cost of early learning and childcare. The lower threshold will increase from €26,000 to €34,000 and the higher threshold from €60,000 to €68,000.

The multiple child discount component of the income-assessed subsidy will also be increased - from €4,300 to €5,500 for families with 2 children and from €8,600 to €11,000 for families with 3 or more children.

Through increasing the NCS Income-Assessed thresholds, families whose reckonable income falls within the new thresholds will receive a higher subsidy, as they will move to a higher income-assessed rate, according to their individual circumstances. Increasing the Multiple Child Discount will further reduce the reckonable income for families with 2 or more children, allowing them to receive a higher subsidy, thereby reducing the cumulative burden of cost.

Most families currently receiving an income-assessed subsidy will see an increase in their rate, due to these changes. This investment will also support additional families to move from their existing universal rate to an income-assessed subsidy.

The Deputy has clarified that the question relates to funding in Budget 2027 Budget 2027 is currently being considered by Government in the context of the annual estimates process, which officials in this Department are actively engaging in. Therefore, the Deputy will appreciate that it would not be appropriate for me to comment further at this stage.

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