Moynihan welcomes fee cap and record investment in childcare

Fianna Fáil TD Shane Moynihan has welcomed a new maximum fee cap for all early learning and childcare services receiving Core Funding alongside record State funding of €390 million this year for the Scheme.

  

Coming into effect from September 2025, the measure will reduce childcare costs and provide greater consistency for families nationwide.

 

The new cap means full-day fees (40–50 hours per week) cannot exceed €295. This fee will then be reduced by State subsidies under the National Childcare Scheme and the free, universal two-year Early Childhood Care and Education (ECCE) preschool programme. 

 

This move coincides with a record €390 million investment in Core Funding for 2025/2026—an increase of €60 million. It will support service providers in meeting rising costs and enable the extension of the 2022 fee freeze to all participating providers, which has enjoyed high participation rates to date, with 92% of services taking part.

 

Deputy Moynihan said, "I warmly welcome this announcement from my party colleague, Minister for Children Norma Foley. It marks another important step toward fulfilling Fianna Fáil’s commitment to capping parents’ childcare costs at €200 per child per month within the lifetime of this government.

 

“A parent being charged the maximum permissible fee of €295 per week for a full day place would be entitled to receive the universal National Childcare Scheme subsidy of €96.30, meaning their own co-payment would be no more than €198.70 per week. Higher subsidies are available for many parents, depending on their level of income and the age and number of children in their family.’’

 

Minister Foley also announced that €45 million of the increased funding will be ring-fenced to support higher minimum pay rates, subject to new Employment Regulation Orders agreed by the Joint Labour Committee. The goal is to improve pay and retention for the sector’s 37,000 staff.

 

The Fianna Fáil TD said “This was an objective that we committed to in our Programme for Government to ensure that the sector will continue to attract and retain this vital workforce. We want the best of people caring for and educating children in the sector. To do that, and to keep them in the sector, they need to be paid fairly. 

 

"I am proud to say that Fianna Fáil is addressing high fees, supporting quality jobs, and ensuring families across Ireland benefit from affordable, high-quality early learning and care,” he concluded.