New maximum fee caps for early learning and childcare services announced in Ireland

Ireland is set to implement new maximum fee caps for early learning and childcare services under the State's core funding scheme, aiming to improve affordability for families. The changes, which will take effect in September, will lower the maximum weekly fee for a typical full day's care (45 hours) from around €198 to €183.70.

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Strictly for parents paying the highest fees.

Minister for Children Norma Foley announced the measure, emphasizing that it represents a "significant advance in standardizing fees across the sector." She noted that while these caps apply to parents paying the highest fees, the State also has a "duty of care to the providers who are maintaining fee freezes."

This initiative is backed by a record €480 million in State funding for the current year, benefiting over 4,600 providers. This represents a €90 million increase from last year's funding. Additionally, €45 million is ringfenced to support childcare workers, ensuring they receive pay increases, to be addressed by the Joint Labour Committee.

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The State funding that is being given to them too for their operational costs including the fee freezes, that’s €480 million that I’ve confirmed today.

The number of children utilizing early years services is steadily increasing, with 277,000 children currently enrolled. The government is also investing in infrastructure, with plans for the State to either purchase or build facilities for eight providers this year, with further provisions planned for the coming years.

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A significant advance in standardising fees across the sector, which has historically seen different rates charged by providers for the same level of provision.