Minister for Children, Disability and Equality Norma Foley T.D has released further details of the impact of reductions in early learning and childcare costs for families in Budget 2027.

A key priority of the Budget is making early learning and childcare more affordable for families.

The maximum fees that can be charged by providers in Core Funding will be reduced for children in both part-time and full-time care.

The National Childcare Scheme subsidy will also increase for children in early years, junior infants and senior infants from September 2027, given the higher costs faced by this group on average.

The case studies below will give examples of the savings this will generate for families with children in early learning and childcare places for different lengths of time each week.

Minister Foley said:

Parents of children in early years and up to senior infants who are enrolled in services participating in Core Funding can benefit from the new fee caps being introduced next September. Over 20 percent of providers will be required to reduce at least one of their fees.

Even if their existing fees are below the new fee caps, and will not be reduced as a result, these parents will benefit from the forthcoming increase in the universal subsidy under the National Childcare Scheme from €2.14 to €2.50 per hour, as well as the increase in the base income-threshold and multiple child deductions for income-assessed subsidies.

Parents of children in first class and upwards who are enrolled in Core Funding Partner Services for school-age childcare services can also benefit from the new fee caps being introduced next September. This will be where their current fees are in excess of the new fee caps.

Here are some examples of the impact that the changes announced in Budget 2027 will make.

1) For a family who is availing of a place for a child up to senior infant class, for 25 hours per week, their costs are currently capped at €458 per month if they receive 25 hours of universal subsidies. As part of the early learning and childcare package in Budget 2027, their bill will reduce to no more than €350 a month from next September. This means that the family will make an annual saving of €1,296 over 48 weeks.

2) For a family who is availing of a full-time place for a child up to senior infant class, five days a week, for 45 hours (e.g. during holiday periods for school-age children), their costs are currently capped at €735 per month taking universal subsidies into account. As part of the early learning and childcare package in Budget 2027, their bill will reduce to no more than €550 a month from next September – or by 25%. This means that the family will make an annual saving of over €2,200 over 48 weeks.

3) For a family who is availing of a full-time place for a child up to senior infant class, five days a week, for 50 hours, their costs are currently capped at around €959 per month taking universal subsidies into account. As part of the early learning and childcare package in Budget 2027, their bill will reduce to no more than €750 a month from next September. This means that the family will make an annual saving of over €2,500 per year over 48 weeks.

4) For a family who is availing of a full-time place for a child who is in first class or higher, five days a week, for 45 hours during school holidays, their costs are currently capped at €183.70 per week taking universal subsidies into account. While they will not qualify for increased universal subsidies, the fee caps in the early learning and childcare package in Budget 2027 means their bill will reduce by 16% to no more than €137.50 a week from next September.

5) For a family who is availing of a full-time place for a child up to senior infant class, five days a week, for 45 hours (e.g. during holiday periods for school-age children) paying an average (median) fee of €800 per month, their costs are currently capped at €414.80 per month if they receive 45 hours of universal subsidy per week. As part of the early learning and childcare package in Budget 2027, their bill is below the new maximum fee caps but it will reduce to €350 a month from next September due to increased universal subsidies. This means that the family will make an annual saving of over €777 over 48 weeks.

The examples provided above are for families accessing the universal subsidies under the National Childcare Scheme. Families on lower incomes can qualify for higher, income-assessed subsidies under the National Childcare Scheme.

As part of Budget 2027, the base income threshold for families for the National Childcare Scheme will be raised from €34,000 to €38,500 as an anti-poverty measure for children, allowing more families to benefit from the maximum subsidies under the Scheme from September 2027.

The Access and Inclusion Model supports for children with disabilities in the Early Childhood Education and Care (ECCE) programme will be extended to children under three years of age from September 2027, benefitting an estimated 1,000 young children.

Core Funding for over 4,600 providers of early learning and childcare will increase by more than €170m, to over €650 million for the next Programme year, commencing in September.

Included in that is funding in the region of €50 million specifically ringfenced to support new negotiations by the independent Early Years Services Joint Labour Committee, for another Employment Regulation Order for early years educators and school-age childcare practitioners from September.

Maximum parental payment for families on universal subsidy

Current maximum parental payment for 45-hour place for a child on universal subsidy

Future maximum parental payment for 45-hour place for a child on universal subsidy (from September 2027)

Note: in the table, a month refers to a 4-week period.

• 25% reduction in maximum co-payment for children on universal subsidy up to end of Senior Infants
• 16% reduction in maximum co-payment for 1st class children receiving 45 hours of universal subsidy
• Co-payments for families receiving an income assessed subsidy are lower.

Co-payment for families on universal subsidy in a service charging the average fee

Current parental payment for a child on the median fee claiming 45-hours universal subsidy (current)

Future parental payment for a child on the median fee claiming 45-hours universal subsidy (from September 2027)

• 16% reduction in co-payment for median fee for children receiving 45 hours of universal subsidy up to end of Senior Infants
• No change in co-payment for 1st class children upwards for families on universal subsidy in an average-fee service.
• Co-payments for families receiving an income assessed subsidy are lower.

ENDS

Minister for Children, Disability and Equality, Norma Foley, and Minister of State with responsibility for Disability, Emer Higgins, have secured a Budget 2027 package of €7.5 billion that will make a real difference to the lives of children, families, disabled people and vulnerable communities across Ireland.

The overall allocation for the Department of Children, Disability and Equality Vote Group will rise to €7.597 billion in 2027, enabling significant new investment in childcare affordability, disability services, child protection and family supports.

A key priority of the Budget is making early learning and childcare more affordable for families. The National Childcare Scheme subsidy will increase from €2.14 to €2.50 per hour for children in early years, junior infants and senior infants from September 2027. This will benefit approximately 107,000 children in total with benefits depending on the number of hours of childcare used.

The maximum fee that can be charged by providers in Core Funding will be reduced from €280 per week to €250 per week for a child in a typical full time, five-day a week place of 40-50 hours.

The increased universal subsidies and the cuts to the maximum fees will reduce costs for many families.

For example, a family who is availing of a full-time place for a child up to senior infant class, five days a week, for 45 hours, their costs are currently capped at €735 per month taking universal subsidies into account.

As part of the early learning and childcare package in Budget 2027, their bill will reduce to no more than €550 a month from next September – or by 25%.

This means that the family will make an annual saving of over €2,200.

The lower income threshold for families for the National Childcare Scheme will be raised from €34,000 to €38,500 as an anti poverty measure for children, allowing more families to benefit from the maximum subsidies under the Scheme.

The Access and Inclusion Model supports for children with disabilities in the Early Childhood Education and Care (ECCE) programme will be extended to children under three years of age from September 2027, benefitting an estimated 1,000 young children.

Core Funding for over 4,600 providers of early learning and childcare will increase by more than €170m, to over €650 million for the next Programme year, commencing in September.

Included in that is funding in the region of €50 million specifically ringfenced to support new negotiations by the independent Early Years Services Joint Labour Committee, for another Employment Regulation Order for early years educators and school-age childcare practitioners from September.

Budget 2027 also delivers significant progress for disabled children and adults, bringing the budget to over €4 billion for the first time.

There will be funding for 212 new residential placements for people with disabilities, in addition to the current 9,000 places being funded. The new places include 100 new planned placements, 112 new urgent placements. There will also be funding to provide for the filling of 22 residential places for people with disabilities that become available with enhanced supports included.

Budget 2027 provides an additional €15 million for respite services, supporting the delivery of a further 14,700 respite sessions over a full year. This is in addition to the 175,000 respite sessions already targeted under the HSE National Service Plan 2026. The investment will help expand respite capacity, support families and carers in their caring role, and ensure more people with disabilities can access respite services when they need them.

Budget 2027 provides funding for a further 150 staff for Children’s Disability Network Teams, which currently support more than 46,000 children across the country. These additional posts will help increase access to early intervention, therapies and family-centred supports for children who need them.

The Budget also provides funding to commence the development of two new Community Neuro-Rehabilitation Teams, helping more people access specialist rehabilitation and support closer to home.

The sustained growth in the disability workforce will continue in 2027, with funding for a further 930 frontline staff across disability services, bringing the total workforce to over 24,500.

A major focus of the Budget is ensuring children are safe, protected and supported to thrive.

Tusla, the Child and Family Agency, will receive funding of over €1.4 billion in 2027, allowing it to continue supporting more than 100,000 referrals each year, stepping in when needed to support tens of thousands of children and families around Ireland. Tusla’s core funding is increasing by €100m (8.4%) but its funding for unaccompanied minors seeking international protection has been reduced by €37m due to a drop in demand, so its overall budget allocation is increased by €63 million (5 per cent) on last year.

There will be 10 new Family Resource Centres, bringing the overall network to 146. The number of multi-disciplinary therapy teams employed by Tusla will be doubled from 6 to 12 to provide more therapy to children in care.

Budget 2027 provides for a new one-year transitional aftercare allowance of €200 per week for young people who have left state care and who have not yet decided on what work, education or training they want to pursue. In addition, the aftercare grant rate for young people leaving care will increase from €300 to €500 to reflect the cost of living.

The Foster Care Allowance, which is currently available to children up to the age of 18, will be extended for those in full-time secondary education until their 19th birthday. This will be paid through a new €125 payment to foster carers and the continued payment of the €300 aftercare payment to the young people who are doing the Leaving Certificate and are over 18.

Funding has been secured for 33.5 new posts at Oberstown Detention Centre to increase capacity and improve services, bringing its overall staff numbers to over 290.

Minister Foley said:

Minister Higgins said:

The Budget package also includes continued investment in equality, participation and inclusion initiatives supporting children and young people, women and girls, Traveller and Roma communities and LGBTIQ+ people.

Minister Foley concluded:

“Budget 2027 represents another important step in delivering on our commitments and creating a fairer, more inclusive Ireland for everyone.”

Notes to Editors

Childcare and Early Learning

National Childcare Scheme

• Up to 293,000 children expected to take part in the National Childcare Scheme during 2027.
• Approximately 107,000 children expected to benefit from the increased universal subsidy (going from €2.14 to €2.50) from September 2027.

Childcare Fee Reductions

• Maximum weekly fee cap for 40-50 hour place reduced from €280 to €250 in Core Funding Partner Services.
• The lower income threshold for families for the National Childcare Scheme will be raised from €34,000 to €38,500.
• Continued maintenance of fee freeze at 2021 levels for the majority of providers.
• Additional funding secured to support improved pay and conditions for early years educators and school-age childcare practitioners.

Access and Inclusion Model (AIM)

• Support for approximately 8,450 children with disabilities and additional needs.
• Expansion of AIM supports to children under three years of age from September 2027.
• Around 1,000 additional children expected to benefit.
• 6% increase in AIM Level 7 capitation rate.

Disability Services

Residential Services

• Additional €62 million secured for disability residential services.
• 212 new planned and urgent residential placements to be delivered, plus 22 enhanced new places.
• Enhanced supports for existing residents with complex needs.
• Funding to support children in care with complex disability needs.
• Continued transition from congregated settings and inappropriate nursing home placements to community living.

Children’s Disability Services

• 150 additional posts secured for Children’s Disability Network Teams, who are currently supporting more than 46,000 children nationwide.

Day Services

• Additional investment to provide approximately 1,450 day service opportunities for school leavers in 2027.
• 53 additional places for older adults.

Home Support and Personal Assistance

• Funding secured for an additional 191,000 home support and personal assistance hours.
• Supports designed to help disabled people live independently at home and in their communities.

Respite Services

• Approximately 14,700 additional respite sessions.

Disability Reform

• Investment in Equal Lives reform programme.
• Funding secured for improved governance, data systems and service planning.
• Continued implementation of the National Human Rights Strategy for Disabled People.

Child Protection and Family Support

Tusla Funding

• Budget allocation of €1.404 billion in 2027.
• Additional €3 million in capital funding bringing the annual capital allocation to €38 million
• Enables Tusla to continue managing over 100,000 referrals annually.

Residential Care

• €57 million additional funding secured.
• Residential care capacity to increase to more than 900 placements.
• Reduced reliance on Temporary Emergency Placements.

Foster Care

• Foster carers supporting young people completing second-level education after turning 18 will receive €125 per week additional support.
• Expansion of foster care recruitment teams.
• Additional investment in relative foster care supports.

Care Leavers

• New Transitional Aftercare Allowance of €200 per week for eligible care leavers not in education or training.
• Payable for up to 12 months until age 21.
• Increased aftercare grant from €300 to €500.

Family Resource Centres

• 10 new Family Resource Centres to open.
• Network will expand to 146 centres nationwide.
• Additional €1.8 million investment.

Therapeutic Supports

• €2.2 million investment to expand Area Based Therapy Teams from six to twelve.
• Additional supports aimed at preventing family and placement breakdown.

Child and Family Homelessness

• Additional €1 million investment in supports for children and families in emergency accommodation or at risk of homelessness.

Special Care

• Funding of €26 million maintained.
• Continued investment in therapeutic supports and special care services.

Oberstown Children Detention Campus

• Funding of €34.8 million current expenditure and €8 million capital funding.
• Additional frontline staffing to increase capacity and improve services.

Guardian ad Litem National Service

• €19.8 million allocated.
• Supports a workforce of 92 staff.
• Ensures children in care proceedings have access to an independent Guardian ad Litem where ordered by the courts.

Equality, Inclusion and Participation

Traveller and Roma Inclusion

• Over €7 million allocated to support implementation of the National Traveller and Roma Inclusion Strategy II.

Women and Girls

• Funding secured to implement the National Strategy for Women and Girls.
• Supports implementation of the Pay Transparency Directive and expansion of Gender Pay Gap Reporting.

LGBTIQ+ Inclusion

• Funding increased by almost 27%.
• Additional support for implementation of the National LGBTIQ+ Inclusion Strategy II and community services.

Child and Youth Participation

• Continued funding to ensure children and young people can influence decisions affecting their lives.

Play and Recreation

• Funding secured for implementation of the new Play and Recreation Strategy.
• Supports play, recreation and social opportunities for children and young people.

Irish Human Rights and Equality Commission

• €11.488 million allocated to support its work safeguarding and promoting human rights and equality.

Adoption Authority of Ireland

• €8.245 million allocated to support adoption services and implementation of the Birth Information and Tracing legislation.

Response to the Legacy of Mother and Baby Institutions

Funding has also been provided for the continued implementation of the Action Plan for Survivors of Mother and Baby Institutions and for the Mother and Baby Institutions Payment Scheme. As part of the Action Plan, funding of €12.76 million has been provided to the Office of the Director of Authorised Intervention, Tuam. Capital funding has also been allocated for the ongoing development of the National Centre for Research and Remembrance, a national memorial and site of conscience in honour of those affected by Ireland’s institutional past and its historic adoption and boarded out systems.

Minister for Children, Disability and Equality Norma Foley has today announced the locations of seven proposed new early learning and childcare projects under the State-led early learning and childcare capital programme.

Across the seven proposed locations there is potential to provide around 600 places to support the Department of Children, Disability and Equality’s policy of improving access to high-quality, affordable early learning and childcare under the Action Plan for Early Learning.

The proposed projects include an early learning and childcare facility in Shanganagh Castle estate in Dublin in an affordable housing estate which has been developed by Dun Laoghaire-Rathdown council and the Land Development Agency.

There are also projects being advanced for new state-led places provided in Boyle in Roscommon, Raphoe in Donegal, Killarney in Kerry, the rapidly growing towns of Gorey and Enniscorthy in Wexford, and Tallaght in South Dublin.

Negotiation processes are ongoing in relation to acquisitions of two other sites in Leinster and Munster under the first phase of the state-led initiative. This will bring the total number of locations expected to be announced this year to nine.

Further locations will be selected to provide thousands of places up to 2030 using the €135 million provided in the National Development Plan.

Minister Foley said:

The Department will now proceed to identify high-quality not-for-profit providers to operate the new services in the following locations, in order to develop these projects for final approval:

Boyle in Co. Roscommon

The proposal is to provide new places in a rural area with an identified undersupply for 1 and 2 year old children.

Gorey, Co Wexford

The proposal is to provide a large service quickly in a rapidly growing area which has been identified as having an undersupply of places.

Enniscorthy, Co. Wexford

The proposal is to provide a large service quickly in a rapidly growing area which has been identified as having an undersupply of places and a number of families experiencing disadvantage.

Killarney, Co. Kerry

The proposal is to create early learning and childcare places in an area with a very large, identified undersupply.

Three additional proposed projects already have high-quality not for profit operators attached.

Raphoe, Co Donegal

The proposal is to secure land and construct a new building to provide an expanded permanent building for a long standing community operator.

Shanganagh Castle estate, Dun Laoghaire Rathdown

The proposal is to provide new places in an area with low levels of community early learning and childcare, in a new affordable homes development from Dun Laoghaire Rathdown and the Land Development Agency. An operator selection process has been conducted and work is now underway to design the fit-out works required for this site.

Airton Road, Tallaght

The proposal is for state investment will help to create new places quickly in an affordable housing development in Airton Road, which is being delivered by the Respond Approved Housing Body.

Detailed developmental work is ongoing on all these projects. This includes independent property valuation, building surveying, conveyancing, procurement, detailed design work for fit out and operator selection. All projects will be underpinned by appropriate legal and contractual arrangements to permanently protect the value of the state’s investment.

Minister of State at the Department of Enterprise, Tourism and Employment, Alan Dillon said:

Minister of State with responsibility for the Office of Public Works, Kevin “Boxer” Moran said:

Since the launch of the state-led initiative last January, the Department of Children, Disability and Equality has been made aware of 99 project proposals which cover most local authority areas. These projects are in very different stages of development. Some projects required the acquisition of land or planning permission. Given the importance of delivery at the early stage of the programme, projects that could proceed rapidly were prioritised.

The proposed projects announced today largely involve the purchasing and fit out of buildings because this will be faster than securing planning permission to construct new buildings on green field sites. The projects are expected to be operational next year, once fit-out works and not-for-profit providers are in place. The Department continues to seek potential projects for consideration.

This state-led initiative will complement the work of existing private and community early learning and childcare providers. There are currently over 4,600 providers in Core Funding, supported by a record €480 million in Core Funding for this current programme year from September 2026 to August 2027. This is a €90 million increase on the previous programme year.

The State-led early learning and childcare capital programme is just one of the actions being taken to increase the supply of early learning and childcare. The record state investment in early learning and childcare, which now amounts to over €1.5 billion per year, is driving the creation of substantial additional numbers of places.

The state’s Building Blocks Extension Scheme is actively underway with 26 projects in contract across the country undertaking extensions to existing premises, constructing new buildings or purchasing new premises, backed by State investment.

Minister Foley said:

Following on from the Building Blocks Extension Scheme that is currently underway, a further Phase 2 of the scheme was launched earlier this year. Over twenty applications were received and are currently being appraised. Announcements of the approved projects will be made in the coming weeks. €10 million is available for Building Blocks in 2027.