New Childcare Fee Caps from September: €480M Package, €183.70 Weekly Max

Children’s Minister Norma Foley announced new maximum childcare fee caps effective September, reducing the highest upfront cost for a typical 45-hour week from approximately €198 to €183.70. This move is part of the government’s commitment to achieve €200 per month per child by the end of its term.

The €480 million package for the next school year represents a 23% increase from last year’s €390 million and includes €45 million specifically allocated for staff wage increases. Around 4,600 childcare providers, or 93% of eligible services, are enrolled in the state’s core funding subsidy scheme. The final fee includes the universal National Childcare Scheme, offering parents €2.14 per hour for up to 45 hours weekly, with additional income-based subsidies available.

Foley and Junior Minister Emer Higgins introduced the new fee bands and overall core funding. While the state subsidy aims to help providers freeze fees and cover operational costs, some providers report insufficient revenue to offer competitive staff salaries, leading to shortages. Early years educators and School Age Childcare (SAC) practitioners start at €15 per hour (85c above minimum wage), lead educators and SAC coordinators at €16 per hour, and graduate centre managers at €20.25.

Foley clarified that the state is not the employer but subsidizes private providers to assist parents. She acknowledged the low wages in the sector, noting the €45 million ringfenced for increases, the specifics of which will be determined by Joint Labour Committee negotiations. Tánaiste Simon Harris called this an important step, promising a roadmap to reach the €200 per month per child target, with the next budget being crucial for progress.