Minister for Children, Disability and Equality Norma Foley has outlined further details of measures announced in Budget 2027 aimed at reducing childcare costs for families, increasing access to childcare places and supporting providers across the sector.

From September 2027, maximum fees charged by childcare providers participating in the Core Funding programme will be reduced, with more than 20% of participating providers required to lower at least one of their fees. The universal subsidy under the National Childcare Scheme will also increase from €2.14 to €2.50 per hour for children up to senior infants, while the base income threshold for income-assessed subsidies will rise from €34,000 to €38,500, allowing more families to qualify for the maximum level of support.

Under the new measures, families using 45 hours of childcare per week for children up to senior infants could see their maximum monthly costs fall from approximately €735 to €550, representing a 25% reduction. In another example provided by the Department, families using 50 hours of childcare per week could save more than €2,500 annually, depending on their circumstances and existing fees.

Budget 2027 will also increase Core Funding for more than 4,600 childcare providers by over €170 million, bringing total funding to more than €650 million for the programme year beginning in September 2027. This includes approximately €50 million earmarked to support negotiations on a new Employment Regulation Order for early years educators and school-age childcare practitioners. The Budget also provides funding to increase access to childcare places and support recruitment and retention across the sector.

Dublin Chamber has consistently highlighted the importance of accessible and affordable childcare in supporting labour market participation and addressing workforce challenges. Measures to reduce costs for families, alongside efforts to increase childcare capacity across the Greater Dublin Area and support the sector's workforce, are important to helping remove barriers to employment and ensuring businesses can attract and retain the talent they need.

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