LAST UPDATE | 3 Jan 2023

THOUSANDS OF FAMILIES will see their childcare costs reduced from today under new subsidy rates.

Families can save up to €175 a month through the scheme.

Parents who are already in receipt of a subsidy for their childcare fees will see it increased from 90c per hour to €1.40 per hour.

The move was announced as part of Budget 2023.

More than 98,000 children are currently in receipt of support, an 82% increase in the number of children for the same period last year.

In Government, the Green Party is delivering cheaper early years and childcare for parents.

From 3 January, the National Childcare Scheme subsidy will increase from 50c per hour of childcare to €1.40 per hour - resulting in potential yearly savings of thousands of euro. pic.twitter.com/cjJMWj6yrc

— Roderic O’Gorman TD (@rodericogorman) December 28, 2022

Frances Byrne, the director of policy and advocacy at Early Childhood Ireland, said today marked a “major milestone in public investment in early-years care and education and school-aged care.

It “moves Ireland closer to the longed-for Nordic model of provision,” she said on RTÉ’s Morning Ireland.

However, Byrne noted that since the subsidy is paid directly to childcare providers to be applied to eligible families’ fees, there is “huge administrative work” involved for providers.

The application process is very straightforward for parents, but the administrative work for staff means that “very highly qualified educators end up doing paperwork when they should be working, providing quality care.”

Parents can find a subsidy calculator and eligibility information on ncs.gov.ie.

Speaking on Morning Ireland, Minister for Children Roderic O’Gorman said that childcare providers have agreed to freeze fees for a year in exchange for increased subsidies.

This will ensure that the reduced cost for families is not cancelled out by providers increasing their fees, he said.

The Minister said he was aware that some smaller childcare providers were unhappy with the new scheme, and said there will be an independent review of the operating models of smaller providers.