Childcare subsidy boost for infants delayed until September 2027

In the latest budget, the government pledged to lift the universal hourly childcare subsidy for children up to senior infants from €2.14 to €2.50 and lower the monthly fee cap to €550, a 25% reduction for full-time daycare users. These provisions will only become active in September 2027, meaning current senior-infant families will not see immediate relief. The budget also raises the income ceiling for full subsidies to €38,500 and increases the two-child discount to €6,000 and the three-child discount to €12,500.

Tax exemption for childminders will be expanded from €15,000 to €20,000, and the cap on the number of children they can care for under the relief will be removed. Ministers highlighted the changes as a step toward the programme’s goal of €200 monthly childcare costs, though the new €550 cap remains far above that target. Early childhood providers have warned of financial strain and called for higher state funding for the ECCE scheme.