3028. Deputy Cathal Crowe asked the Minister for Children, Disability and Equality if she plans to introduce additional measures to help working families with multiple children in private childcare who remain above the revised national childcare scheme (NCS) income-assessed threshold; if she will consider increasing the universal subsidy rate to align with the actual market costs of care for this group; if her Department will evaluate the financial impact of rising fees on multi-child households currently excluded from means-tested support as part of the ongoing review of the NCS and in preparation for Budget 2027; and if she will make a statement on the matter. [62726/26]

The National Childcare Scheme (NCS) provides financial support to help families with their early learning and childcare costs.

There are two types of subsidies available for children aged between 24 weeks and 15 years of age:

A universal subsidy is payable for children between the ages of 24 weeks and 15 years of age who use early learning and childcare services from an approved service provider. The universal subsidy is not means-tested and is available to all qualifying families of any income level. The current universal subsidy is €2.14 per hour.

An income-related subsidy is payable for children from 24 weeks to 15 years of age who use early learning and childcare from an approved service provider. The level of subsidy payable is determined by the family’s reckonable income (i.e. gross income minus tax, PRSI and other deductibles, and minus any applicable multiple child discount) and age of the child.

The income-assessed subsidy provides higher rates of subsidy to families with lower incomes. As of 1 September 2026, the lower income threshold has been increased from €26,000 to €34,000 and the upper threshold from €60,000 to €68,000, improving affordability for up to 47,000 children from lower-income families. Families with reckonable income below €26,000 are eligible for the maximum rate of subsidy, thus providing the highest level of financial assistance to families experiencing poverty and disadvantage.

Shaping the Future: the Early Years Action Plan Phase 1 was published on 17th December 2025. Shaping the Future sets out measures to achieve key Programme for Government commitments on the affordability, quality, and accessibility of early learning and childcare (ELC) and school-age childcare (SAC). The Action Plan adopts a phased approach that enables action to be taken in 2026 while allowing adequate time for a broad public consultation on longer-term actions.

Phase 2 actions, which will be undertaken from 2027 through to the end of 2029, will be published in Q4 2026. Before Phase 2 actions can be specified in line with the Programme for Government commitment, a broad public consultation process is currently underway.

Additionally, an independent evaluation of the National Childcare Scheme (NCS) commenced in March 2026. This evaluation aims to assess the performance of the NCS to date and its operation within the wider early learning and childcare funding and policy environment. The evaluation will examine whether the NCS, as part of the wider funding model, is making high-quality early learning and childcare more accessible and affordable, particularly for families in the lowest income groups and the most disadvantaged households. It will also identify any improvements that could be made to enhance accessibility and affordability and to ensure that the NCS is working for as many families as possible. The evaluation will include consultation and engagement with parents, educators, practitioners, providers and representative organisations. Any changes to the NCS will be carefully considered in light of the findings of this evaluation.

Regarding Budget 2027, work is currently underway preparing forecasted budgetary requirements for 2027 for early learning and childcare. Engagement with the Department of Public Expenditure Infrastructure, Public Service Reform and Digitalisation will be ongoing over the coming months.