Ireland Plans €1,900 Childcare Savings in Budget 2026 Proposal

The Irish government is considering significant changes to its childcare support system in Budget 2026, with plans that could save families up to €1,900 annually. The proposal, driven by Children’s Minister Norma Foley, aims to extend the Early Childhood Care and Education (ECCE) program by adding an extra hour of free pre-school each day.

Currently, the ECCE program provides free preschool for children aged between two years and eight months and five years and six months. It runs for five days a week across 38 weeks of the year, offering three hours of daily education. In the 2022/23 academic year, approximately 108,616 children participated in the initiative.

Foley’s initiative, which is part of a broader budget strategy, is designed to provide targeted assistance to families struggling with childcare costs. An extra hour could mean substantial savings for parents, particularly in urban areas like Dublin, where weekly childcare expenses are notably higher. Many families could save between €30 and €50 each week, depending on their circumstances.

Emer Currie, Fine Gael’s Spokesperson on Childcare, has expressed strong support for the proposed extension. She emphasized that the current ECCE program has been a significant success, with a participation rate of 96 percent. Currie pointed out that over 70 percent of low-income families rely on this program to afford preschool for their children, making the addition of a fourth hour crucial for many working parents.

The estimated cost of this additional hour is around €38 million, a figure that Currie has discussed with Minister Foley. She highlighted the importance of early childhood education for children’s development, stating, “An extra hour would also be beneficial for a young child’s social and learning development.”

In conjunction with the proposed extension of the ECCE, the government has announced a fee cap for childcare services. Starting this September, a maximum fee of just under €200 per week will be introduced for approximately 190,000 parents across Ireland. This cap aims to reduce the financial burden on families and is expected to affect around 10 percent of early learning and childcare providers.

Under the new fee structure, parents will pay no more than €295 per week for a full-day place of between 40 to 50 hours weekly. This change is anticipated to bring fees closer to the average of €197 for full-day care. Additionally, families will benefit from state subsidies under the National Childcare Scheme, which can significantly lower out-of-pocket expenses.

For a parent charged the maximum fee of €295, the universal subsidy of €96.30 means their co-payment would be reduced to just €198.70 weekly. The government has indicated that higher subsidies will be available for families based on income levels, the number of children, and their ages.

The proposed measures in Budget 2026 reflect the government’s ongoing commitment to support working families and enhance access to early childhood education. As discussions continue, many are hopeful that these initiatives will ease the financial pressures faced by parents and improve educational opportunities for young children throughout Ireland.