O’Shea Welcomes Continued Progress in Reducing Childcare Costs for Families

Cork North West Fine Gael TD John Paul O’Shea has welcomed the ongoing progress being made by Government to reduce the cost of childcare, describing recent measures as “meaningful and important steps” towards making childcare more affordable for families.

The update, provided in response to a Parliamentary Question, outlines a range of actions already delivered and further commitments under the Shaping the Future Early Years Action Plan.

Welcoming the progress, Deputy O’Shea said “Reducing the cost of childcare is one of the most important issues for working families, and I am encouraged to see steady and sustained progress being made. The extension of fee caps and continued investment through Core Funding are helping to bring greater certainty and affordability for parents.”

The Government has confirmed that maximum fee caps have now been extended across all Core Funding partner services, helping to ensure that fees remain at or around 2021 levels for the majority of providers. This has already played a key role in preventing further increases in childcare costs.

In addition, enhancements to the National Childcare Scheme will expand supports to more families, including:

• Increasing the minimum income threshold for maximum subsidies from €26,000 to €34,000 

• Raising the upper income limit from €60,000 to €68,000 

• Providing increased supports for families with multiple children 

“These improvements are particularly welcome, as they will ensure that more families – especially those on low and middle incomes – can benefit from increased financial support.”

Deputy O’Shea also welcomed the Government’s continued commitment to reducing childcare costs to €200 per month per child over the lifetime of the programme.

“It is clear that this is being approached in a planned and sustainable way, with further reductions already scheduled for later in 2026 and beyond. That long-term approach is important to ensure that the system works for families, providers, and staff alike.”

Further measures due from Autumn 2026 are expected to reduce fees for lower-income families, with additional reforms planned through to 2029 following an extensive public consultation process.

Deputy O’Shea concluded “There is more to do, but the direction of travel is very positive. I will continue to work constructively to support measures that make childcare more affordable, more accessible, and of the highest quality for families across Cork.”