Minister Foley announces increased childcare subsidies for 47,000 children today

Minister for Children, Disability and Equality, Norma Foley has welcomed important changes to the National Childcare Scheme (NCS) today which will provide increased childcare subsidies for up to 47,000 children.

The National Childcare Scheme provides two types of financial support to help families reduce the cost of early learning and childcare.

All eligible families may apply for a Universal subsidy, regardless of family income, which is worth up to €96.30 per week, for a maximum of 45 weekly hours.

Alternatively, families may qualify for a higher Income-Assessed subsidy which varies depending on family circumstances, including income level and number of children under the age of 15.

From today (31 August 2026), the income thresholds used to calculate Income-Assessed subsidies will increase. This means that an estimated 47,000 families will qualify for higher subsidy rates, helping to make early learning and childcare more affordable.

Commenting on these changes, Minister Norma Foley said:

The changes to how income-assessed awards are calculated under the National Childcare Scheme form part of the Government’s commitments under the Early Years Action Plan, Shaping the Future to bring down the cost of early learning and childcare for families.

In total, over €528 million will be paid to families this year under the National Childcare Scheme, out of total state investment of almost €1.5 billion in the early learning and childcare sector.

As part of the changes, the lower income threshold has increased from €26,000 to €34,000, so families now earning €34,000 or less will be able to qualify for the maximum subsidy rate.

For example, a family with a reckonable income of €34,000 will now receive a rate of €5.10 per hour for a child aged between 24-52 weeks. Prior to these changes, that same family would have received €4.40 per hour.

The upper income threshold will increase from €60,000 to €68,000, meaning that families now earning up to €68,000 will be able to avail of a higher income assessed rate. For example, a family with a reckonable income of €60,000 will now receive a rate of €2.84 per hour for a child aged between 24-52 weeks, compared to €2.14 per hour previously.

As a result of these changes, all existing income assessed subsidy recipients with an income between €26,000 and €60,000 will see an increase in their subsidy rate.

The Multiple Child Discount will also increase. This means that a lower income is used to assess subsidy entitlements, enabling many families to receive a higher hourly subsidy rate.

The Multiple Child Discount will increase from €4,300 to €5,500 for families with two children and from €8,600 to €11,000 for families with three or more children.

The multiple child discount reduces parents’ reckonable income for the Income Assessed subsidy, so for example, the parents of 3 children with income of €78,000 would have the multiple child discount of €11,000 applied, thereby bringing their reckonable income down to €67,000 which is within the new thresholds.

Families who currently avail of a Universal subsidy are encouraged to visit www.ncs.gov.ie and use the ‘Subsidy Calculator’ to check their entitlements and see whether they would benefit by applying for a higher Income Assessed rate and, if so, apply for an Income Assessed award.

The Scheme Administrator, Pobal, is communicating directly with existing National Childcare Scheme applicants regarding the upcoming changes.

Existing Income-Assessed awards will be updated automatically where applicable. Affected applicants will be notified once their award has been updated.

Further information is available at https://www.ncs.gov.ie/en/latest-news/.

ENDS

1. What is changing?

From 31 August 2026, the income thresholds used to calculate Income Assessed subsidies will increase along with the Multiple Child Discount, as follows:

• The income assessed lower threshold will increase from €26,000 to €34,000 and the upper threshold will increase from €60,000 to €68,000
• The Multiple Child Discount for two children under fifteen will increase from €4,300 to €5,500 and for three or more children, the discount will increase from €8,600 to €11,000.

2. How are the new rates calculated?

• Income-Assessed awards are calculated based on a family’s individual circumstances. A number of factors determine an income-assessed rate including the family’s reckonable income, the child’s age and educational stage, and the number of children in a family.
• Reckonable income is the income that is assessed when a family applies for the NCS. It is the family income, including Department of Social Protection payments (such as Child Benefit, Jobseeker’s Benefit, Carer’s Allowance, less tax, PRSI, USC and any allowable items under the Scheme (such as the Multiple Child Discount).
• Given these factors, the resulting rate varies significantly depending on family circumstances. Families are encouraged to use the Childcare Subsidy Calculator available on www.ncs.gov.ie to generate an estimate as to what rate they may be eligible for.

3. Do families need to do anything?

It depends on which NCS award a family is currently availing of:

• Families who already have an Income Assessed award will have this recalculated using the new Multi Child Discount and NCS Thresholds. This will be done automatically, and affected applicants will be notified once their existing award has been updated.
• Families who have a Universal award should check if they qualify for a higher rate subsidy using the calculator on the NCS website www.ncs.gov.ie. This should help applicants decide whether it is worth applying for an Income Assessed award instead.

4. Will families see an increase to their NCS subsidy?

• Many families receiving an Income Assessed subsidy will see an increase in their rate. The amount will depend on the individual family circumstances including reckonable income, age and number of children in the household.

5. Will families who receive the Universal Subsidy see an increase in their rate?

• The upcoming enhancements relate to Income Assessed awards only. Families receiving the Universal Subsidy will continue to receive €2.14 per hour – or up to €96.30 per week
• It is advised that Universal applicants check whether they qualify for a higher subsidy in light of these changes using the Subsidy Calculator on www.ncs.gov.ie. If the calculator indicates the Universal applicants may benefit from a higher rate, they may then wish to apply for an Income Assessed subsidy instead.
• It is important to note that if a Universal applicant submits a new Income Assessed application, it will end the existing subsidy and they must give the new CHICK to their childcare provider as soon as it is received. Failure to do so may result in a gap in subsidy which could result in additional childcare fees. Further information is available on www.ncs.gov.ie/latest-news

6. Do families still need to renew their award if it expires before 31 August?

• These changes do not affect the normal renewal process. If an Income-Assessed award is due to expire before 31 August 2026, families should renew their application in the usual way before it expires to ensure that their childcare subsidy continues without interruption. The changes outlined above will be reflected, if applicable, on the new award.
• When their renewal is approved, applicants will receive a new CHICK for each child detailed in the application. It is important that the family provide the new CHICK to their childcare provider as soon as possible. This allows the provider to register the updated award and ensure that subsidies continue to be applied. Delays in this process could lead to a gap in subsidy and additional fees that are not covered by the Scheme.