- rom: Department of Children, Disability and Equality
- Published on: 3 June 2026
- Last updated on: 3 June 2026
Minister for Children, Disability, and Equality, Norma Foley today announced the details of the new maximum fee caps for early learning and childcare services participating in Core Funding.
The new maximum fee caps will lower the maximum fees that can be charged by new and existing early learning and childcare services receiving Core Funding from the state.
Under the new maximum fee caps, the highest possible upfront cost for a typical full day place of 45 hours per week will drop from around €198 per week to €183.70 per week. with universal subsidies under the National Childcare Scheme. Higher subsidies are available for many parents, depending on their level of income and the age and number of children in their family.
This new measure represents a significant advance in standardising fees across the sector, which has historically seen different rates charged by providers for the same level of provision.
The move will come into effect in September and will be accompanied by record State funding of €480 million this year for over 4,600 providers in the state’s Core Funding scheme. Core Funding supports providers to meet their staffing and general operating costs in return for maintaining a fee freeze for parents and, where applicable, observing maximum fee caps as well.
Approximately 12% of services will be required to reduce at least one fee. However, the majority of parents are already paying below the new maximum fees and will continue to benefit from the fee freeze introduced in 2022.
Welcoming the announcement, Minister Foley said:
I am introducing new maximum fees to further reduce the cost of early learning and childcare for families, while also increasing Core Funding for providers.
“Affordable early learning and childcare is essential to supporting families and improving outcomes for children. The new maximum fees will ensure more parents benefit from lower costs, while the additional funding will support providers in continuing to deliver high-quality services.
State funding in the early learning and childcare sector has more than doubled in recent years – rising from €730 million in 2022 to €1.524 billion in 2026.
Today I am announcing that Core Funding for providers will increase from €390 million in the current programme year to €480 million in the next programme year starting in September. This is an increase of over €90 million, or 23 per cent.”
The increased allocation includes up to €45 million in ring-fenced funding to support increases in the minimum rates of pay for early years educators and school-age childcare practitioners. These rates will be the subject of negotiations at the Joint Labour Committee, the independent body responsible for negotiating minimum pay rates in the sector.
Minister Foley continued:
“Supporting the workforce is essential to ensuring quality in early learning and childcare. This funding will help to make further progress on improving pay while maintaining the strong partnership between the State and providers.
Core Funding is currently enjoying the highest levels of participation rates to date, with over 4,640 services, or over 93 per cent of all eligible services, taking part.
I am conscious of the importance of promoting affordability without compromising the viability of businesses in the sector. That is why the increased funding through the Base Rate will ensure that no service gets left behind on account of keeping their rates affordable for families.”
Minister of State for Disability, Emer Higgins, said:
“I am conscious of the importance of promoting affordability without compromising the viability of businesses in the sector. That is why the increased funding through the Base Rate will ensure that no service gets left behind on account of keeping their rates affordable for families.”
“This is another important step in making early learning and childcare more affordable for families while supporting providers to continue delivering high-quality services, and it will make a real difference for parents and children across the country.”
€21.4 million in full-year funding was secured in Budget 2026 to support providers in adhering to Core Funding fee management conditions. This brand-new funding will be distributed to all Partner Services through an enhanced Base Rate and will allow most services to maintain the fee freeze while offsetting a portion of the fee income reduction experienced by the minority of services that will be impacted by maximum fee caps.
For more information, please visit: Core Funding
ENDS
Note for Editors:
Table 1: Core Funding Fee Caps
| Fee Band | Hours per week | Maximum weekly fee for New Partner Services in 2024/2025View more | Maximum weekly fee for Partner Services in 2025/2026 | Maximum weekly fee for Partner Services in 2026/2027 | Parental co-payment after maximum NCS universal subsidyView more |
| Band A | Less than 10 hours | €65 | €59 | €56 | €34.60 (10 hours of subsidies) |
| Band B | Between 10 hours and 19 hours 59 minutes | €130 | €118 | €112 | €69.20 (20 hours of subsidies) |
| Band C | Between 20 hours and 29 hours 59 minutes | €195 | €177 | €168 | €103.80 (30 hours of subsidies) |
| Band D | Between 30 hours and 39 hours 59 minutes | €260 | €236 | €224 | €138.40 (40 hours of subsidies) |
| Band E | Between 40 hours and 49 hours 59 minutes | €325 | €295 | €280 | €183.70 (45 hours of subsidies) |
| Band F | 50 or more hours | €390 | €354 | €336 | €239.70 (45 hours of subsidies) |
Table 2: Core Funding Base Rates (by the State)
Prior to Core Funding by the State there was no comparable scheme/s that was underpinned by the ‘staffed capacity’ principle which is fundamental to the Core Funding scheme. Set out below is the aggregate monthly base rate per child place offered (on a full time, part time, sessional and school age basis), which varies by age. This excludes funding for graduate premiums and the Staffing Funding Additional Contribution, as well as the targeted measures.
| Age range | Monthly base rate payment per child prior to Core Funding (2021/2023) | Core Funding monthly base rate payment per child in Year 1 (2022/2023) | Core Funding monthly base rate payment by the state per child in Year 5 (2026/2027)View more | Percentage change in monthly base rate between Year 1 and Year 5View more |
| Full-time service (45 hours per week,) | ||||
| 0 to 1 years | €0.00 | €323.70 | €391.95 | 21% |
| 1 to 2 years | €0.00 | €208.65 | €274.95 | 32% |
| 2 to 3 years | €0.00 | €179.40 | €239.85 | 34% |
| 3 to 6 years | €0.00 | €132.60 | €173.55 | 31% |
| Part-time service (20 hours per week,) | ||||
| 0 to 1 years | €0.00 | €143.87 | €174.20 | 21% |
| 1 to 2 years | €0.00 | €92.73 | €122.20 | 32% |
| 2 to 3 years | €0.00 | €79.73 | €106.60 | 34% |
| 3 to 6 years | €0.00 | €58.93 | €77.13 | 31% |
| Sessional (15 hours per week, | ||||
| 0 to 1 years | €0.00 | €78.85 | €95.48 | 21% |
| 1 to 2.5 years | €0.00 | €50.83 | €66.98 | 32% |
| 2.5 to 6 years | €0.00 | €30.88 | €40.38 | 31% |
| School-age (Term Time: 20 hours per week,) | ||||
| 4 to 15 years | €0.00 | €34.83 | €39.27 | 13% |
| School-age (Out of Term: 40 hours per week,) | ||||
| 4 to 15 years | €0.00 | €18.33 | €20.67 | 13% |
Table 3: Year 5 targeted measures in 2026/2027
| Targeted Measure | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Flat rate top up for sessional-only | – | €4,075 | €5,000 | €5,000 | €5,000 |
| Minimum allocation | – | €8,150 | €14,000 | €14,400 | €14,400 |
| Maximum allocation | – | €600,000 | €500,000 | €450,000 | €450,000 |
Ring-fenced funding to support improvements in staff pay
For 2025/2026, the Department secured €45 million in a full year, to support employers to meet the costs of further increases to the minimum rates of pay in the sector.
This facilitated the development of a new funding element – the Staff Funding Additional Contribution (SFAC) to centre-based services. This measure was designed to support Core Funding Partner Services to meet the the costs of increasing rates of pay because of new Employment Regulation Orders negotiated by the Joint Labour Committee.
For Programme Year 5, an additional funding allocation – up to a maximum of €45 million – has been secured to support further Employment Regulations Orders from September 2026/2027, contingent on negotiations by the independent Joint Labour Committee. A second grant will be designed to distribute the new funding. The calculation of the new rates will include Graduate Lead Educator hours.
