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budget 2023

Childcare: Reduction of up to 25% announced in costs under National Childcare Scheme

It will cost €121 million and save families up to €175 a month.

LAST UPDATE | Sep 27th 2022, 3:27 PM

A 25% REDUCTION in the cost of childcare under the National Childcare Scheme has been announced.

Minister for Public Expenditure and Reform Michael McGrath says it will cost €121 million and save families up to €175 a month.

It will take effect from January and be capped at €2,100 per year, according to Children’s Minister Roderic O’Gorman.

The reduction in fees will be implemented through increased subsidies under the National Childcare Scheme.

The childcare subsidy is currently 50 cents per hour, but will increase to €1.40 per hour from January.

Early Childhood Ireland called it “an important day for young children” but noted that it is “still awaiting details of how this money will be allocated”. 

Elsewhere, Childhood Services Ireland “cautiously welcomed” the announcment but that its members are “still being hammered by inflation”. 

Minister McGrath also announced a further allocation of €59 million to the recently established Core Funding model

Announcing the measures, Minister McGrath added that those working in the childcare sector will “see improved pay and conditions to better reflect the work they undertake to provide quality care to our children”.

Minister McGrath said it “will provide for extra hours and enhanced capacity in the sector”.

Minister McGrath said the childcare budget “will reach €1 billion euro next year, five years ahead of target”.

“Alongside the measures announced last year,” said Minister McGrath, “this funding will help to make childcare more affordable, improve the wages of staff, and help to ensure the sustainability of childcare providers.”

Meanwhile, there will also be an additional €500 lump payment for those on the Working Family payment, which will be paid in November.

The Working Family Payment thresholds will also be increased by €40 per week.

Also in November, there will be a double Child Benefit payment to all qualifying households. 

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