Starting Monday, September 2, the minimum hourly subsidy under the National Childcare Scheme (NCS) for children under 15 will increase from €1.40 to €2.14. Additionally, the subsidy provided through the NCS sponsor referral program, which supports vulnerable children, will also see an increase.

According to the Department of Children and Equality, families utilizing Tusla-registered early learning and childcare services could save up to €96.30 per week per child, amounting to over €5,000 annually, thanks to the subsidy increase.

This change comes at a time when many parents are grappling with high childcare costs or difficulty securing a place in a creche or with a childminder. Early years educators have raised concerns about the financial pressures they face, with some considering fee increases to stay afloat.

For many women, the high cost of childcare has been a barrier to returning to work, as it can consume a significant portion of their salary.

he Department highlighted recent policy measures, including the August 2022 extension of the universal subsidy to all children under 15 and the January 2023 increase of the universal hourly subsidy from 50 cents to €1.40. These measures have reportedly improved affordability for families.

OECD data cited by the Department indicates that in 2022, couples earning the average wage spent 27% of their household income on full-time early learning and childcare, while single parents spent 17%.

By 2023, these figures dropped to 17% and 7%, respectively. Similarly, for those earning the minimum wage, couples’ spending decreased from 24% to 12%, and single parents’ spending dropped from 4% to 0%.

So far this year, 175,389 children have benefitted from an NCS subsidy.

Minister for Children, Roderic O’Gorman, expressed his satisfaction with the new rates, noting that they build on previous increases and the expansion of the scheme to older children. He encouraged all eligible families to take advantage of the available supports by visiting www.NCS.gov.ie, calling the Parent Support Centre at 01 906 8530, or speaking with their early learning and childcare provider.