How the National Childcare Scheme subsidy works, what the fee cap means, what free preschool covers, and what Budget 2027 changes, with worked examples for families.
Under Budget 2027, the most a family will pay for a full-time childcare place falls from €735 to €550 a month, for children up to senior infants. The Government says that saves up to €2,220 per child a year. It comes from two changes working together: a bigger subsidy and a lower fee cap.
Two kinds of help with childcare costs
The National Childcare Scheme (NCS) pays part of your childcare fees directly to your provider. You pay the rest. The provider must be registered with Tusla and have an NCS contract.
| Universal subsidy | Income-assessed subsidy | |
|---|---|---|
| Who gets it | Every family, any income | Families with reckonable income under €68,000 |
| Child's age | Over 6 months and under 15 | Under 15 |
| Rate now | €2.14 an hour | Up to €5.10 an hour |
| Top rate if income is | Not income-based | €34,000 or less |
| Hours | Up to 45 a week | Up to 45 a week if working or studying; 20 if not |
Reckonable income is your household income after certain deductions, such as pension contributions and maintenance you pay. It is not the same as your gross pay. The income-assessed rate also depends on your child's age and stage.
Bigger subsidies from September 2027
Budget 2027 raises the universal subsidy from €2.14 to €2.50 an hour from September 2027. This is for children in early years childcare, junior infants and senior infants.
More families will also get the top income-assessed rate. From September 2027, the income limit for that rate rises to €38,500. The upper limit stays at €68,000.
The multiple child discount is taken off your income before your subsidy is worked out. For two children under 15, it rises from €5,500 to €6,000.
What the fee cap means
Core Funding is a State scheme that pays childcare services directly. In return, services agree to limits on fees, and most must hold them at 2021 levels. There is also a cap on the weekly fee for the most common full-time place.
Take the fee cap, subtract the universal subsidy for 45 hours, and you get the most a family pays. That is how the €735 and €550 monthly figures are worked out.
Worked examples for families
These examples use the official rates and assume a full-time place at the weekly cap. Your own fee may be lower. Months are counted as four weeks, as in the official figures.
| Example | Now | After Budget 2027 changes |
|---|---|---|
| Full-time fee at the cap (45 hours) | €280 a week | €250 a week |
| Universal subsidy (45 hours) | €96.30 a week | €112.50 a week |
| Family pays a week | €183.70 | €137.50 |
| Family pays a month | about €735 | €550 |
| Part-time subsidy (20 hours) | €42.80 a week | €50.00 a week |
- Family on €80,000 reckonable income: universal subsidy only, as in the table above.
- Family on €36,000 now: some income-assessed subsidy. From September 2027, the top rate.
- Family with two children under 15: knock €5,500 off income first (€6,000 from September 2027).
- Family on the top rate: up to €5.10 an hour, or up to €229.50 for 45 hours a week.
To see your own figure, use the subsidy calculator on ncs.gov.ie. It takes your income, your child's age and the hours you need.
Free preschool: the ECCE scheme
The Early Childhood Care and Education (ECCE) scheme gives free preschool for up to two years before school. It covers 3 hours a day, 5 days a week, for 38 weeks a year.
children, almost, expected in free preschool under ECCE in 2027, with €249.1 million in funding
Source: assets.gov.ieYour child can start once they turn 2 years 8 months by 31 August. You pay for hours beyond ECCE, but the NCS can help with those.
Other Budget 2027 changes
- Access and Inclusion Model (AIM) support for children with disabilities extended to under-3s from September 2027, about 1,000 children
- Childminders can earn up to €20,000 a year tax-free, up from €15,000, and the limit on children minded is removed
- Total early learning and childcare funding of over €1.6 billion in 2027, up over 10.8%
- Up to 293,000 children expected to get NCS subsidies in 2027, about 16,000 more
Budget papers do not yet give a start date for the lower fee cap. Check with your provider before you plan your budget.
Families who are homeless and living in emergency accommodation, with children under 13, can get free childcare for up to 45 hours a week. This is called the NCS sponsor subsidy.
The National Childcare Scheme is only for low-income families.
Every family with a child over 6 months and under 15 in registered childcare can get the universal subsidy of €2.14 an hour, whatever their income.
What this means for you
- Apply online at ncs.gov.ie with a verified MyGovID, your children's PPS numbers and dates of birth.
- Ask your provider if it is in Core Funding and what its fee will be from September 2027.
- If your income is near €38,500, check the calculator again in 2027. You may get the top rate.
- Tell the NCS if your income or hours change, so your subsidy stays correct.
- Hours in ECCE or school do not reduce your NCS hours entitlement.
Universal subsidy rises to €2.50 an hour; income threshold rises to €38,500; multiple child discounts rise; AIM extended to under-3s
Department confirms when the €250 weekly fee cap applies in Core Funding services
New Employment Regulation Orders for childcare staff, linked to ringfenced Core Funding from September 2027
- Citizens Information: National Childcare Scheme
- Citizens Information: Early Childhood Care and Education scheme
- Citizens Information: Budget 2027
- Government of Ireland: Budget 2027 Expenditure Report, Part II
- Government of Ireland: Budget 2027 Expenditure Report (full)
- Minister Chambers: Budget 2027 statement
- Government of Ireland: Your guide to Budget 2027
- National Childcare Scheme
