Budget 2027
Budget 2027 and childcare: lower fees and more help
Last updated 16 October 2026
Budget 2027 caps childcare fees up to senior infants at €550 a month, down from €735, widens subsidies and lets childminders earn €20,000 tax-free.
Budget 2027 makes several changes to the cost of childcare. Most are changes to the National Childcare Scheme (NCS), which is funded through spending, not tax. The childminder change is a tax measure and takes effect when Finance (No. 2) Bill 2026 is enacted.
Lower fees for younger children
For children up to and including senior infants, the NCS universal subsidy rises from €2.14 to €2.50 an hour. Fees are capped at €137.50 a week, or €550 a month, down from €735. According to Citizens Information, for a child in childcare 45 hours a week:
| Universal subsidy: 45 hours × €2.50 | €112.50 |
| Most the provider can charge you a week | €137.50 |
| A month (four weeks) | €550.00 |
| Saving against the old €735 cap, a year | €2,220.00 |
The Government's Budget in Brief puts the saving at up to €2,220 a year.
Income-assessed help
- from September 2027, families with reckonable income (the income that counts) of €38,500 or less get the maximum income-assessed NCS subsidy, up from €34,000
- the multiple child discount for two children under 15 rises from €5,500 to €6,000, and for three or more from €11,000 to €12,500
- from September 2027, the Access and Inclusion Model (AIM) supports extend to children under 3
Childminders: €20,000 tax-free
Childcare Services Relief lets childminders caring for children in their own home earn income free of income tax. The Tax Policy Changes document raises the limit from €15,000 to €20,000. It also removes the cap on the number of children, subject to the regulatory rules for childminders.
Other help for families
- Child Support Payment rises by €6 a week, to €64 for under-12s and €84 for those 12 and over, from January 2027
- Working Family Payment income limits rise by €30 a week
- Child Benefit stays at €140 a month
Work it out
Sources
- Government of Ireland: Budget in Brief 2027 (checked 25/10/2026)
- Citizens Information: Budget 2027 (checked 25/10/2026)
- Department of Finance: Budget 2027: Tax Policy Changes (checked 25/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.