Govt provides further details of Budget childcare package

The Department of Children has released additional information regarding the childcare package announced in the 2027 Budget. Following initial confusion over how maximum weekly fees for childcare services under the Core Funding scheme would be impacted, the department provided clarification this week.

Under the Core Funding Agreement, childcare providers cannot arbitrarily raise fees without ministerial approval through a fee assessment process or ensure the fee increase is proportionate to added care provision. Providers offering more than 50 hours of care per week could see fees capped at €300 from September 2027, provided they maintain or lower fees below current limits.

While maximum fees for full-time care are reducing from €735 to €550 per month, families using providers already offering fees below the new caps may not see immediate savings. The new childcare fee bands (A to G) are based on hours of care offered per week. Band E services providing 40-49 hours will see their weekly fee decrease from €280 to €250, while Band F services offering 50+ hours will see a reduction from €336 to €300 per week.

Data on the number of families and providers in each fee band is currently unavailable, as it is being collected through National Childcare Scheme registrations for the 2026-2027 programme year. The department expects this data to become available, allowing for a clearer understanding of the impact of the revised caps and potential savings for families.