Childcare fees to be capped from September, but minister admits lack of data on parents’ costs

Government pledges further childcare fee reductions despite gaps in data on what families currently pay

Under the new fee cap, parents availing of between 40 and 50 hours of childcare a week will pay a maximum of €183.70 per child per week after all available Government subsidies have been applied. Picture: Niall Carson/PA Wire

Childcare fees for parents will be capped at €183.70 per week from September, but children’s minister Norma Foley has said there is no data showing how many parents currently pay more than that amount.

While she suggested that 25% of parents pay less than €200 a month for childcare, she acknowledged that costs vary significantly depending on where families live and the number of hours their children spend in care.

Under the new fee cap, parents availing of between 40 and 50 hours of childcare a week will pay a maximum of €183.70 per child per week after all available Government subsidies have been applied. This represents a reduction of €14.30 per week compared with last year’s cap.

That equates to €734.80 per month per child, €534.80 more than the Government’s stated target of reducing childcare costs to €200 per month.

Parents availing of more than 50 hours of childcare a week will see their fees capped at €239.70 per week, or €958.80 per month.

Higher subsidies are available to some families, depending on income, the number of children in the household and their ages.

No data on higher-fee bracket

However, Ms Foley said the Government has not collected data showing what proportion of parents use more than 50 hours of childcare a week and therefore fall into the higher fee-cap bracket.

“45 to 50 [hours] is actually the most common uptake by parents. Believe it or not, it's the one that is most consistently used by parents,” she said.

“For the first time, come this September, we will have much clearer data. From what we know thus far, 25% of parents are either on or below the €200 per month. But we need more granular details.

“Throughout the month of September, providers are being asked to return what their fees are, what parents are being asked to pay, and what ultimately they have to pay on the basis of when they receive the National Childcare Subsidy.”

While fee caps are in place, some parents report receiving crèche quotes of more than €1,000 a month in some parts of the country.

Ms Foley said that while such figures may be quoted initially, “what they have to pay ultimately when the National Childcare Subsidy is calculated or put into the system, it is less again”.

She added: “I would be confident that parents are getting full access to the National Childcare Subsidy Scheme.”

‘Postcode lottery’ in childcare costs

The Fianna Fáil TD also suggested that 25% of parents are already paying €200 or less per child each month for childcare.

However, under the revised fee caps, only parents availing of 10 hours of childcare a week or less would face fees below €200 a month. From September, they will pay €34.60 a week, or €138.40 a month.

Ms Foley acknowledged that regional variations affect childcare costs and described the situation as a postcode lottery.

“It can vary on a regional basis. It can obviously vary in terms of demands of the parents and the request they have to their provider,” she said.

“That's why the whole agenda is to ensure that at the end of the day, the commitment of the Government is that all parents, irrespective of where you are, you will be paying fees of €200 over the month.” 

Ms Foley said there will “absolutely will” be further cuts to childcare fees in October’s budget that would come into effect in September 2027.

Some €480m will be allocated to the Core Funding Programme for the year beginning in September. The programme provides funding to childcare providers in return for freezing fees.

An additional €45m will be ringfenced to support improved pay rates for childcare workers. The increase will be determined following negotiations through the Joint Labour Committees (JLCs).