DUBLIN — Minister for Children, Disability and Equality, Norma Foley, has hailed a landmark year for the National Childcare Scheme (NCS), with new data revealing a 12% surge in participation. On Monday, January 19, 2026, the Department released provisional figures showing that approximately 245,731 unique children benefited from childcare subsidies in 2025, up from roughly 218,000 the previous year.2
The increase is being attributed to an aggressive government investment strategy, most notably a 53% hike in the minimum hourly subsidy introduced in late 2024.3
Regional Growth: Rural Counties Lead the Surge
While the national average growth sat at 12%, several counties experienced significantly higher uptakes. Clare and Offaly reported the sharpest increases at 18%, followed closely by Roscommon at 16%.
In the capital, growth remained steady, with a 9% increase in Dublin City and an average of 13% across the rest of the county. These figures suggest that the enhanced subsidies are successfully reaching families in both urban hubs and rural communities.
September 2026: The Next Phase of Affordability
Minister Foley emphasized that while 2025 was a year of record participation, further systemic changes are slated for September 2026 under the “Shaping the Future” action plan. These reforms aim to lower the financial burden on the lowest-earning households and cap fees for those paying the highest rates.
| Change Type | Current Threshold | New Threshold (Sept 2026) |
| Lower Income Threshold | €26,000 | €34,000 |
| Upper Income Threshold | €60,000 | €68,000 |
| Highest Weekly Fee Cap | Varies by provider | Maximum Fee Reduction |
By raising the income thresholds, an estimated 47,000 additional children from low-income families will qualify for the maximum subsidy rate.4 Furthermore, the government plans to increase the “multiple child discount,” which reduces a family’s reckonable income to allow for higher support tiers.5+1
Strategic Objectives: Quality and Capacity
Beyond direct subsidies, the €1.48 billion allocation for Early Learning and Childcare in Budget 2026 is targeting the sector’s “capacity gap.”6
- State-Led Provision: Investment is being channeled into State-led childcare facilities to meet unmet demand.7
- Staff Retention: Ring-fenced funding of up to €15 million will be introduced in September 2026 to support improved wages for educators, addressing the recruitment crisis that has previously stalled capacity growth.8
- Fee Management: Partner services under the “Core Funding” model will be subject to new, lower maximum fee levels, ensuring that government subsidies result in genuine out-of-pocket savings for parents rather than being absorbed by rising costs.9
The Bottom Line
With one in four childcare services now located on school premises and participation rates at an all-time high, the NCS is moving closer to its long-term goal: reducing the average cost of childcare to €200 per month over the lifetime of the government. For Minister Foley, the 2025 data serves as proof that “progressive universalism”—giving the most support to those who need it most—is functionally reshaping the Irish social landscape.
