New childcare subsidy rates will reduce costs for thousands of families by almost €100 a week, the Government has said.
The minimum hourly subsidy under the National Childcare Scheme (NCS) for children under 15 will increase from €1.40 to €2.14 from Monday, September 2.
The hourly subsidy under the NCS sponsor referral programme, which makes special provisions for vulnerable children, will also increase.
For families using Tusla-registered early learning and childcare, the Department of Children and Equality said the subsidy increase could see families save up to 96.30 euros a week per child or more than €5,000 a year.
The subsidy increase comes as many parents are struggling with the cost of childcare or finding a place at a creche or childminder.
Early years educators have warned that they are struggling to keep their businesses afloat amid increasing costs and some have said they may need to increase their fees.
Many women opt not to return to work after having a child as the monthly cost of childcare can match their salary.
The Department said that policy measures taken, such as extending the universal subsidy from all children under the age of three to all children under 15 in August 2022 and increasing the universal hourly subsidy from 50 cents to €1.40 an hour in January 2023, have made a difference to what families can afford.
It cited OECD data that it said showed improvements in affordability indicators for early learning and childcare in Ireland.
For example, in 2022, couples on the average wage spent 27 per cent of their household income on full-time early learning and childcare while single parents on the average wage spent 17 per cent of their household income on full-time early learning and childcare.
In 2023, this figure fell to 17 per cent and seven per cent respectively.
In 2022, couples on the minimum wage spent 24 per cent of their household income on full-time early learning and childcare while single parents on the minimum wage spent four per cent of their household income on full-time early learning and childcare.
In 2023, this figure fell to 12 per cent and zero per cent respectively.
A total of 175,389 children have benefitted from an NCS subsidy so far this year, the Department said.
Roderic O’Gorman, minister for children, said: “I am delighted to announce the introduction of these new subsidy rates under the National Childcare Scheme, which are building on the increase I introduced to the minimum hourly subsidy rate in January 2023 and the extension of the scheme to children aged up to 15 in September 2022.
“These new subsidy rates will assist many thousands of families across the country to avail of quality early learning and childcare at more affordable levels.
“I encourage all eligible families to avail of these supports on offer, by visiting www.NCS.gov.ie, calling the Parent Support Centre on 01 906 8530 or talking to their early learning and childcare provider.”
