The cost of full-time childcare for young children looks set to be cut by at least €1,000 annually per child in the Budget tomorrow.
Discussions on the final Budget measures will continue throughout the day.
Childcare is seen as a central plank of Budget 2027.
The matter was discussed at length during the weekend, but the exact figures must be nailed down today.
But it is clear at this point that for those in childcare for 45 hours a week, the changes will result in a cost cut for parents of at least €1,000 annually.
This will be achieved through changes to the €96.30 weekly subsidy as well as lowering the current maximum €280 per week charge for childcare.
The new rates are set to be introduced next September, and they will apply to children up to Senior Infants class.
More funding will also be available to increase the wages of those working in the early years childcare sector.
However, the prospect of a further reduction to the student contribution fee is looking increasingly remote, even if the issue remains under consideration.
The Government leaders will today discuss tax changes to reduce the cost of energy as well as finalising an overall income tax package.
Minimum wage
The Government also looks set to accept a recommendation to bring the minimum wage to €14.94 cent from January, although plans to have a living wage in place by 2029 have stalled.
A proposal around the cost of cutting student fees by €250 has been tabled by Minister for Further and Higher Education James Lawless.
It is generating mixed views within the coalition as the last parts of the budget jigsaw fall into place.
Last Thursday, a package worth €16 million to extend SUSI grant eligibility to families with two or more children in higher education was finalised.
However, Minister Lawless is seeking an additional €26 million to reduce the student contribution fee by €250 a year.
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Initially, the minister had hoped to secure funding for a €500 cut, matching the permanent reduction introduced last year, but it is understood that he recognises the current budgetary constraints.
He has told Government party leaders that a €250 reduction would represent good value for money and deliver further progress on the Programme for Government commitment to reduce the student contribution fee over the lifetime of the Government.
A proposed rebate scheme on draught beer poured from kegs, primarily aimed at small rural pubs, is among the topics that still have to be discussed this evening.
Speaking at his party’s centenary Cairde Fáil dinner last night, Taoiseach Micheál Martin said the primary objective of the Budget is about easing the cost of living pressures on families and households and promised that there would be a significant childcare package.
He stressed the importance of the permanent changes that will be introduced to help households in the Budget.
However, he did not completely rule out the possibility of a temporary energy credit saying only that the matter had not been discussed, but he could not anticipate what proposals might come forward at the 11th hour.
Opposition call for spending on disability and cost of living
Speaking on RTÉ’s The Week in Politics, Minister of State at the Department of Disability Emer Higgins said that a €200-per-month cap on childcare costs was the target to get to over the next four budgets, but said she believed there will be progress on this in Budget 2027.
Sinn Féin Spokesperson on Finance Pearse Doherty said the Budget must put ordinary workers and families first and look after the most vulnerable, adding that a proper cost of living package was needed now.
He also called for an immediate increase in disability payments, and a cost of disability payment on top of that.
Ms Higgins responded that the Government does not have the kind of money that Sinn Féin says it has in its alternative budget, accusing the party of just wanting to tax and spend, which she said was not responsible.
She said that it was important to support people at the petrol pumps, and also important to give back in tax packages and supports the services people rely on,.
Social Democrats Deputy Leader Cian O’Callaghan if there is an increase to the disability payment, it is just reinstating a payment that was scrapped previously by the Government.
He also called for targeted energy credits, and that there was a need to invest in high-quality childcare.
Read more: Two factors preventing ministers from budget utopia
Govt discussing pause on carbon tax for heating oil and gas
The Taoiseach said last night that the Government was leaning towards a pause on carbon tax on home heating oil for the lifetime of the Government.
It is understood that a similar approach is being considered for gas.
However, speaking on RTÉ’s This Week, Minister for Foreign Affairs Helen McEntee said that the suggestion the Government could completely scrap the carbon tax would not get rid of the pricing issue and would potentially lead to Ireland later having to send money to the EU.
“We will maintain funding that we can reinvest back into that type of adjustments and changes that people need, be it in their homes, be it in renewable energy or renewable sources,” she said.
“The world is changing, and we have to continue to focus on our measures around climate change.”
