Shaping the Future Early Years Action Plan 2026: What Phase 1 Means for Your Service

The Shaping the Future Early Years Action Plan 2026 is the most comprehensive reform programme the Irish early years and school-age childcare sector has seen in years. Published in December 2025 by Minister for Children, Disability and Equality Norma Foley, the plan sets out the Government’s approach to building a childcare system that is more affordable for families, more accessible for children who are currently excluded, and higher in quality for everyone.

Phase 1, which covers actions to be delivered throughout 2026, builds on the foundations already laid by Core Funding, the National Childcare Scheme, and the Together for Better funding model. It uses existing policy mechanisms to drive rapid improvements while a broad public consultation on longer-term Phase 2 reforms takes place in the first half of 2026. Phase 2 actions, covering the period from 2027 to 2029, will be published later in 2026.

For early years providers in Ireland, Phase 1 brings a set of concrete changes that will affect your fees, your compliance obligations, your workforce, and the families you serve. This guide walks you through every key action in Phase 1 and what each one means for your service in practice.

What Is the Shaping the Future Action Plan and Why Does It Matter?

Shaping the Future is the Government’s response to the Programme for Government commitment to publish a detailed action plan for building an affordable, high-quality and accessible early learning and childcare system. The plan sits within the broader First 5 strategy, Ireland’s whole-of-government strategy for babies, young children and their families, and is the next major step in the journey that began with the launch of Together for Better and Core Funding in 2022.

The ambition at the heart of Shaping the Future is significant. The Government has committed to reducing parental childcare fees to a maximum of €200 per month over the lifetime of the current Government, using a combination of NCS subsidies and fee control measures. Phase 1 is the first step in delivering on that commitment.

Alongside Shaping the Future, Minister Foley also published the Simplify and Support Action Plan for Simplification, which sets out steps to reduce the administrative burden on providers and streamline regulatory requirements. Both plans are designed to work together, making the system better for children and families while also making it more manageable for providers and educators on the ground.

The Three Pillars of Phase 1: Affordability, Access and Quality

All Phase 1 actions are grouped under three themes: Affordability, Access and Quality. Here is a breakdown of what is happening under each theme and what it means for your service.

Pillar 1: Affordability

Affordability is the most immediate priority in Phase 1. The Government has acknowledged that despite the significant investment already made through Core Funding and the NCS, many families in Ireland are still paying more for childcare than in comparable European countries. The Phase 1 affordability actions are designed to deliver real, visible reductions in what families pay from September 2026.

• Lower Core Funding Fee Cap from September 2026: The maximum fee that Core Funding Partner Services can charge families will be reduced from September 2026. The existing cap, set at €295 per week for full-time provision of 40 to 50 hours per week, is being reviewed with a view to lowering it further. The exact new cap figures will be confirmed by the Department before the start of the 2026/2027 programme year. Providers whose fees are currently at or near the cap should monitor gov.ie and their local City or County Childcare Committee for confirmation of the new figure and prepare to update their fee schedules, Parent Statements, and Hive profiles accordingly.
• New NCS Income Thresholds from September 2026: The lower income threshold for the NCS income-assessed subsidy will rise from €26,000 to €34,000, and the upper threshold will rise from €60,000 to €68,000. This will extend the income-assessed subsidy to an estimated 47,000 additional children across Ireland. For providers, this means more families will benefit from higher subsidies, reducing the net fee they pay while your total income per child remains the same.
• Increased Multiple Child Discount: The multiple child discount applied to reckonable household income for NCS assessment purposes is being increased. This means families with two or more children in childcare will receive a larger deduction from their assessed income, resulting in higher subsidies. The exact updated discount amounts will be confirmed closer to September 2026.
• Commitment to €200 Per Month Maximum Fee: Phase 2 will include the bolder structural reforms needed to bring parental fees down to a maximum of €200 per month over the life of the Government. Phase 1 is the first step on that journey.

Pillar 2: Access

Access in Shaping the Future is about ensuring that every child who needs a childcare place can get one, regardless of their needs, background or family circumstances. The Phase 1 access actions focus specifically on inclusive admissions, expanding Equal Start, and growing childcare capacity.

• Mandatory Publication of Admissions Policies: This is one of the most significant and widely discussed changes in Phase 1. From 2026, all early years and school-age childcare providers will be required to publish their admissions policies. The Government has signalled that it will consider making public funding conditional on services having inclusive admissions policies in place. The motivation behind this action is clear: some parents have been reluctant to disclose that their child has additional needs for fear it would affect their chances of getting a place. Publicly available admissions policies are intended to give families confidence that access to a service is fair, transparent and non-discriminatory.
• Making Public Funding Conditional on Inclusive Admissions: While the regulatory detail is still being developed, providers should be aware that participation in Core Funding and other publicly funded programmes may, from the 2026/2027 programme year onward, require services to have a published admissions policy that meets minimum standards for inclusivity. Services should begin drafting or reviewing their admissions policy now in anticipation of this requirement.
• Expansion of Equal Start: The Equal Start programme, which provides targeted supports to services in areas of disadvantage, is being expanded under Phase 1. This means more services will become eligible for Equal Start supports, including Better Start mentoring, dedicated inclusion staff, and area-based co-ordination. If your service is in an area of disadvantage, contact your local City or County Childcare Committee to find out whether Equal Start supports are now available to you.
• Building Blocks Capital Investment: The Building Blocks Scheme continues to receive funding under Shaping the Future to expand childcare capacity and address the shortage of places in high-demand areas. Equipment grants, minor capital grants and major capital grants remain available to Core Funding Partner Services.

Pillar 3: Quality

The quality actions in Phase 1 focus on the people who deliver early learning and childcare every day: the educators, practitioners and managers working in settings across Ireland. The Government’s commitment to a graduate-led workforce is being advanced through two specific Phase 1 actions.

• Nurturing Skills Learner Fund 2026: The Nurturing Skills Learner Fund, which covers 90% of course fees for early years educators pursuing a Level 7 or Level 8 degree in Early Childhood Care and Education, has been extended for the 2026/2027 academic year. Applications for the 2026 intake opened in March 2026 and close on 1 May 2026. More than 350 new places are available. Educators applying must be working in a Tusla-registered ELC or SAC service. The fund aims to raise the proportion of graduate educators from 39% in 2025 to at least 50% by 2028. As a provider and employer, you can actively encourage eligible staff members to apply.
• Staff Funding Additional Contribution Linked to EROs: Up to €45 million over a full programme year has been ring-fenced through Core Funding specifically to help providers meet the cost of new Employment Regulation Orders when they are agreed by the Joint Labour Committee. This funding is not yet activated and will be released once new EROs are given statutory effect. It must be spent exclusively on staff pay and conditions.
• School-Age Childcare Regulations: Comprehensive regulations for school-age childcare services will be introduced in 2026 as part of a wider revision of childcare regulations. This will bring SAC services under a clearer regulatory framework for the first time. If you operate a school-age childcare service, watch for guidance from Tusla and your CCC on the implementation timeline.
• Review and Simplification of Regulatory Requirements: The Simplify and Support Action Plan commits to reducing the administrative burden on providers, including streamlining Hive reporting, simplifying policy documentation requirements, and rationalising inspection processes over time. While most of these changes will take time to implement, the direction of travel is toward a less burdensome administrative environment for providers.

The Admissions Policy Requirement: What Providers Must Do Now

Of all the Phase 1 actions, the mandatory publication of admissions policies is the one that requires the most immediate attention from providers. Here is what you need to know and what you should be doing right now:

• Review your current approach to admissions and identify whether you have a written admissions policy in place
• If you do not have a written admissions policy, draft one now. It should set out clearly who is eligible to apply for a place, how places are allocated when demand exceeds supply, what the service’s approach to children with additional needs is, and how the service meets its reasonable accommodation obligations
• Ensure your admissions policy makes no reference to conditions that could be considered discriminatory under the Equal Status Acts, for example selecting against children with disabilities or requiring information about a child’s needs as a condition of an application
• Prepare to publish your admissions policy in a place that is clearly accessible to parents and the public, for example your website, your service entrance, and on request
• Watch for further regulatory guidance from the Department of Children, Disability and Equality on the minimum standards that admissions policies must meet before the 2026/2027 programme year begins
• Seek guidance from your local City or County Childcare Committee if you are unsure whether your current admissions practices meet the inclusivity standards signalled in the Shaping the Future plan

At Early Years Shop, our Records, Policies and Toolkits range includes ready-to-use policy templates built around Irish legislative requirements. An admissions policy template is a practical starting point for services that need to develop or formalise their policy quickly.

Phase 1 at a Glance: Summary of All Key Actions

What Phase 2 Will Bring and Why It Matters Now

Phase 2 of the Shaping the Future plan will cover the period from 2027 to 2029 and will include the more fundamental structural reforms needed to achieve the Government’s long-term ambition of a maximum €200 per month parental fee. A broad public consultation is taking place in the first half of 2026 to inform Phase 2, and the Phase 2 report will be published later in 2026.

Early years providers, educators and representative organisations are encouraged to participate in the Phase 2 consultation process. Early Childhood Ireland and Childcare Ireland are the principal representative bodies advocating on behalf of the sector and will be submitting detailed responses. Your CCC will also be involved in local consultation events.

The reason Phase 2 matters now is that some of the more ambitious reforms being considered, including moving to a single funder model, further structural changes to the fee framework, and expanded regulatory requirements, could significantly affect how services operate from 2027 onward. Being informed about the direction of Phase 2 now allows you to make better decisions about your service’s capacity, staffing, premises and financial planning today.

Preparing Your Service for Shaping the Future

The providers who will navigate the Phase 1 changes most successfully are those who start preparing now rather than waiting for September 2026. Here is a practical action plan:

• Draft and publish your admissions policy as soon as possible
• Review your current fee structure against the upcoming lower fee cap and model the impact on your income
• Update your NCS knowledge so you can answer the increased volume of parent queries about subsidies from September 2026
• Encourage any eligible staff members to apply for the Nurturing Skills Learner Fund before the 1 May 2026 deadline
• Check your eligibility for Equal Start supports with your local City or County Childcare Committee
• Explore the Building Blocks Scheme if you need capital investment to expand capacity or upgrade your premises
• Keep your Early Years Hive profile, fee schedule and service calendar fully up to date ahead of the September 2026 programme year changes

At Early Years Shop, we provide a full range of compliance resources, policy templates, records toolkits, posters, signs and quality materials specifically designed for Irish early years providers. Everything you need to stay compliant, stay funded and stay focused on delivering excellent care is available in one place.