Crèches for vulnerable children in some disadvantaged areas in the State may face closure as health boards are unable to fund their services from next month.
Health boards in the eastern region have informed crèche managers that the necessary funds have not been allocated.
In a memo the Northern Area Health Board tells managers: "I regret to inform you that having consulted with the nursery managers, with yourselves and with the general manager, I must advise you that at this time and until I am advised differently there will be no payments available to supplement parents' contributions."
The move comes despite assurances from the Minister for Social and Family Affairs, Ms Coughlan, last November that health boards would take over the crèche supplement after she discontinued it in the Estimates.
The cut was one of 16 aimed at saving €56.8 million. Health boards have provided 90 per cent of funding for these crèches, while the supplement provided 10 per cent. The supplement, paid to parents dependent on social welfare, is worth about €75 per child per week.
One crèche immediately affected is Our Lady's Nursery in Ballymun, where all 58 children receive the supplement. Its manager, Sister Majella McCabe, said yesterday 32 children would be leaving next month. "I've been interviewing for new kids but I don't know if they are going to be able to join. The parents certainly can't afford to pay," she said.
Spokespeople for the three eastern regional health boards said existing recipients would still be paid, and they were "examining the cost implications" of taking over the payment for new applicants. The Department of Health said no money had been allocated for the payments, while a spokesperson for the Department of Social and Family Affairs said last night the supplements would be paid to existing recipients but new applications would be turned down.