I have always been clear in communicating that the €200 per month commitment over the lifetime of the Government is hugely important. While the phase 1 report of Shaping the Future: Early Years Action Plan sets out the next steps towards this long-term ambition, I have not waited until now to take action. In September 2025, maximum fee caps were extended to all partner services in core funding. Budget 2026 also enables core funding to continue to support fee-control measures. It will ensure fees remain at 2021 levels for a majority of providers.
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. However, this objective cannot be achieved through the national childcare scheme alone. The fee freeze and maximum fee caps required for core funding have been key to the progress in recent years in making early learning and care and school-age childcare services more affordable. The phase 1 report of Shaping the Future sets out actions that will be carried out in 2026 using existing policy tools. The 2026 actions on affordability will include further reductions in some of the highest fees paid by parents by lowering the maximum fees core funding partner services can charge. In addition, from autumn 2026 we will reduce fees for lower income families through the national childcare scheme.
Specifically on the national childcare scheme, phase 1 of Shaping the Future commits to an increase to the lower or base income threshold of the income-assessed subsidy from €26,000 to €34,000 to ensure families with incomes below the relative income poverty line receive the maximum subsidies, a measure that came out of the recent budget; an increase to the upper income threshold of the income-assessed subsidy from €60,000 to €68,000 to extend income-assessed subsidies to more families - again, that came from the budget and we were happy to secure it; and an increase to the multiple-child deduction component of the income-assessed subsidy for families with two children under the age of 15 from €4,300 to €5,500, and for families with three or more children under the age of 15 from €8,600 to €11,000.