2026-04-23

129. Deputy Paul McAuliffe asked the Minister for Children, Disability and Equality the progress to reduce the cost of childcare to €200 per month per child through the national childcare scheme, as set out in the programme for Government; and if she will make a statement on the matter. [29145/26]

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.

My children are now 14 and 16 and while that makes me feel old, it is remarkable to see the investment we have made in childcare over the period. We paid nearly €1,500 per month with no subsidy of any sort from the Government. As the Minister said, the national childcare scheme supports families. However, we need to be careful. A commitment was made. I am saying this not only to the Minister, Deputy Foley, but also to the Department of public expenditure. It is a key commitment over the lifetime of the Government and each year we need to be working towards delivering it so that, at the end of the Government's term, we will have followed through on it. Many positive things will come out of delivering it. It is important. On the issue, there is always a tension between the provider, the childcare worker and the parent and the needs of all three. While we have to balance that, I return to the point that we made a commitment and I hope we will do everything we can in the remaining years of the Government to deliver it.

I absolutely agree with the Deputy. There is, in many respects, a balancing act in this. We have to ensure it is affordable for parents and that enough places are made available. We spoke earlier about State-led initiatives and the building blocks extension, which will be launched this week for providers. We also have to ensure that enough staff are available and that we are supporting them. I acknowledge that €45 million was put on the table last year to support staff and another €45 million is being put on the table this year to do so. We are currently working on phase 2 of the action plan for early years. The Deputy will be aware there has been a strong consultation element to that, working through the issues and the perspectives of parents, providers and staff, to bring us to the point where we are delivering on all three aspects, the affordability for parents, a sufficiency of places and support for staff. We need to make progress quickly, but the actions we take in this second phase of the action plan will have to be sustainable and underpinned by the support and public consultation on the three different elements.

Along with the national childcare scheme, the commitment to a public childcare model is also important. That is why building blocks phase 1 was important. I welcomed the fact the Minister came to our nursery in Ballymun and saw at first hand the work being done. On the balancing act between childcare workers, providers and parents, I am concerned that the €45 million that was set aside last year is still the subject of some negotiation. I would like to see, as quickly as possible, that money landing in the pockets of childcare workers because it is important we deliver for all three stakeholders. I reiterate how important the building blocks programme is. I should be putting my question to the Minister for public expenditure. However, I compare it to the equal opportunities childcare programme of the early 2000s. The investment it made in youth centres and childcare was invaluable. We live with its legacy and I have no doubt we will live with the legacy of what the Minister is doing in decades to come.

I acknowledge the great work happening in the Deputy's constituency. It was a pleasure to visit Ballymun and see at first hand the excellent work that happens there. I am aware of the Deputy's personal commitment to advancing early years childcare provision in his constituency. Specifically, it is hugely important that we support providers and parents from an affordability point of view, but that we also support staff. I acknowledge that the €45 million is subject to an independent joint labour committee. I do not interfere with that, but the Government makes the money available. It is for the purpose of supporting staff and that is how it will be used. However, the decision around it is independent of the Department and I respect that. All voices are important in this area. As a country and nation, we need to acknowledge the importance of early years education. We also need to have a pathway forward. That is the purpose of phase 2 of the action plan. In that regard, there are 50 consultation processes taking place on the ground across the country at the moment. Some have started, more are ongoing. I invite as many people as possible, including parents, workers and providers, to engage in that forum.