Parents paying the highest creche fees could be in line for a boost in the budget, under proposals being examined by Minister for Children Norma Foley.
The Government introduced a cap on childcare fees earlier this year. This means no parents should pay more than €295 a week for a child attending a service participating in the Government’s Core Funding scheme for between 40 and 50 hours a week. This cap has only recently been implemented and will not yet be reflected in data relating to payments made by parents.
It is understood, as part of preparations for Budget 2026, Ms Foley is examining measures which would focus on how to bring down fees for families paying the highest costs.
It is also expected the frozen-fees arrangement, which has fixed fees at 2021 levels, will be extended.
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It is not clear if more universal measures – such as an increase in the amount paid out under the National Childcare Scheme – will come through in the budget. The coalition has committed to bringing the cost of childcare down to a maximum of €200 per month per child.
Targeting the most expensive creche fees would likely benefit more parents around Dublin and other cities, departmental data on charges suggests.
Data released by the Department of Children earlier this month suggests average weekly fees are highest in Dun Laoghaire-Rathdown, where full-day care costs €258.57 per child; Wicklow (€232.43) and Dublin Fingal (€230.77).
Other Dublin local authority areas are also among the highest in the state, with an average of €226 in South Dublin and €220.48 in Dublin City.
Cork City comes in at an average of €218.40, while the lowest average cost is in Monaghan, at €155 weekly for full-day services. These figures are reduced for users by around €96 due to the application of State subsidies.
Elsewhere, Minister for Social Protection Dara Calleary is expected to push for an increase in the child-support payment that would at least match last year’s increase. In Budget 2025, the payment increased by €4 weekly for under-12s and €8 for over-12s.
Sources said the Department of Public Expenditure had emphasised the importance of “moderating expenditure” in early talks on welfare. They added that agreement had not yet been reached on the overall size of the package, or specific measures.
Advocacy groups have sought an increase of €8 and €15 respectively for the two age groups receiving the payment, which is paid in respect of children whose parents are on welfare.
Mr Calleary is also expected to seek that the fuel allowance be paid to families in receipt of the working family payment, in line with Programme for Government commitments.
Minister for Education Helen McEntee is expected to focus on special education, funding for DEIS and schools.
Government sources said that a proposed move to cut VAT on the sale of new apartments has not yet been agreed, although they confirmed that such a move is on the table as part of negotiations for Budget 2026. However, a full abolition of the VAT is unlikely.
