3106. Deputy Naoise Ó Muirí asked the Minister for Children, Disability and Equality the maximum level of hourly support paid under the NCS in different age categories for those on lowest incomes allowing the highest rate of payment; the rate for those at the highest level of income who still qualify for some premium over the universal rate; and if she will indicate the way in which the intermediate rate payable to a particular family is calculated. [63885/26]

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. Currently, all families with children attending a registered provider or childminder can avail of €2.14 per child per hour towards their costs under the universal subsidy for a maximum of 45 hours per week. This subsidy can contribute up to €96.30 per week for families availing of 45 hours of early learning and childcare per week.

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 income-assessed subsidy provides higher rates of subsidy to families with lower incomes. 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.

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.

Applicants with reckonable income (inclusive of any partner’s income) at or below €34,000 per annum qualify for the maximum hourly rate of subsidy towards childcare costs. Table 1 below shows the maximum and minimum income-related subsidy rates per hour, which vary according to the child’s age and the child’s education status.

Table 1.

*NS represent the min subsidy in formulae below.

**XS = the maximum subsidy rate (which varies by age and education status).

For applicants with reckonable income (inclusive of any partner’s income) between €34,000 and €68,000 per annum, the subsidy rate tapers downward as reckonable income rises, declining evenly from the maximum subsidy rate (column B in the table) to the minimum subsidy rate (column A in the table). €68,000 is the maximum income threshold for the income-related subsidy.

The following formula is used to determine the rate of subsidy:

???? ??? ???? = ?? + ( (?? ??)(?? ??)

(?? ??) )

NS = the minimum subsidy rate €2.14

XS = the maximum subsidy rate (which varies by age and education status),

MT = the maximum income threshold (€68,000),

BT = the base income threshold (€34,000), and

RI = the reckonable income.

For a family whose income is just below the highest level of income threshold, the rate of subsidy will depend on the age of the child, see column XS in table above.

Table 2 below details the breakdown of the hourly NCS income-assessed subsidy rate for the newly increased thresholds. The hourly rates are broken down into €1,000 increments to illustrate the taper rate as the income level increases.

Table 2