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You are here: Home / cat / Ireland Announces €480M Core Funding Year 5 with New Fee Caps for Childcare

Ireland Announces €480M Core Funding Year 5 with New Fee Caps for Childcare

Dated: June 4, 2026

Dublin — June 3, 2026 — Minister for Children, Disability, and Equality Norma Foley has unveiled new maximum fee caps for early learning and childcare services, alongside a record €480 million allocation for Core Funding Year 5.

The new fee caps will lower the maximum weekly cost for a typical full-day childcare place (45 hours per week) from €198 to €183.70, with additional subsidies available under the National Childcare Scheme. This measure aims to standardise fees across the sector, ensuring affordability for families while maintaining service quality.

Core Funding, introduced in 2022, supports providers with staffing and operating costs in return for maintaining a fee freeze and adhering to maximum fee caps. The expanded funding will benefit over 4,600 providers, with approximately 12% of services required to reduce at least one fee.

Minister Foley highlighted the dual focus on affordability and workforce support: “Affordable early learning and childcare is essential to supporting families and improving outcomes for children. The new maximum fees will ensure more parents benefit from lower costs, while the additional funding will support providers in continuing to deliver high-quality services.”

The €480 million allocation represents a 23% increase from the previous year’s €390 million, including €45 million ring-fenced to support higher minimum pay rates for early years educators and school-age childcare practitioners. Negotiations on pay rates will take place at the Joint Labour Committee.

Minister of State for Disability Emer Higgins added: “This is another important step in making early learning and childcare more affordable for families while supporting providers to continue delivering high-quality services.”

With participation rates at over 93% of eligible services, the Core Funding scheme continues to strengthen Ireland’s childcare sector, balancing affordability for parents with sustainability for providers

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