National Childcare Scheme (NCS) 2026: New Income Thresholds and What They Mean for Your Service

The National Childcare Scheme NCS 2026 is undergoing its most significant changes since the scheme launched in November 2019. From September 2026, new income thresholds will come into effect that will make the income-assessed subsidy available to tens of thousands of additional families across Ireland. These changes, confirmed under Phase 1 of the Shaping the Future Early Years Action Plan, will affect how parents interact with the scheme, the queries your staff will be asked to answer, the demand for places at your service, and the administrative processes you manage on the Early Years Hive throughout the year. Nationally, approximately 245,000 children benefitted from the NCS in 2025, a 12% increase on 2024. The September 2026 income threshold changes are expected to bring a further 47,000 children from lower income families into the scheme. For providers, this means increased demand, more registrations to manage, and more parents seeking your help in understanding how their subsidy works. This guide explains exactly how the NCS works for providers, what is changing in September 2026, what the new thresholds mean in practice, and what you need to do to ensure your service is ready.  

What Is the National Childcare Scheme and How Does It Work for Providers?

The National Childcare Scheme is Ireland’s first ever statutory entitlement to financial support for childcare costs. It replaced all previous legacy childcare programmes including the Community Childcare Subvention, the Training and Employment Childcare Scheme, and the Community Childcare Subvention Plus programme from 2019 onward. Under the NCS, the Government pays a subsidy directly to the childcare provider on behalf of the parent or guardian. The provider deducts the subsidy from the family’s weekly childcare bill. The parent pays only the remaining balance. This means the provider receives the full childcare fee, with part coming from the parent and part coming directly from the State through Pobal. There are two types of NCS subsidy:  

• The Universal Subsidy, which is available to all families regardless of income, for children aged between 24 weeks and 15 years
• The Income Assessed Subsidy, which is means-tested and provides a higher hourly subsidy to families whose reckonable household income falls below the upper income threshold

  Both subsidies are administered by Pobal through the Early Years Hive portal. The NCS runs on an annual programme year from September to August, aligned with the ECCE and Core Funding programme years.  

The Big Change: New NCS Income Thresholds from September 2026

The most significant update to the NCS in 2026 is the increase to both the lower and upper income thresholds for the income-assessed subsidy. These thresholds have not changed since the scheme launched in 2019 and are being updated as part of the Shaping the Future Early Years Action Plan to better reflect the current cost of living for working families in Ireland.  

Income Threshold	Up to August 2026	From September 2026
Lower income threshold (full subsidy below this)	€26,000	€34,000
Upper income threshold (graduated subsidy above lower)	€60,000	€68,000
Families above upper threshold	Universal subsidy only (€2.14/hr)	Universal subsidy only (€2.14/hr)
Estimated additional children benefitting	N/A	Up to 47,000 children

  What this means in practice is that a family which was previously just above the €26,000 lower threshold and therefore only receiving a partial income-assessed subsidy will now receive a full subsidy from September 2026. Equally, a family previously above the €60,000 upper threshold who received only the universal rate of €2.14 per hour will now potentially qualify for a graduated income-assessed subsidy if their income falls between €60,000 and €68,000. The multiple child discount will also increase from September 2026. This deduction reduces the reckonable family income used to calculate the subsidy, meaning families with more than one child in childcare will benefit from an even larger subsidy. The exact updated discount rates had not been confirmed at the time of publication. Check gov.ie and ncs.gov.ie for the confirmed rates closer to September 2026.  

NCS Subsidy Rates: What Providers Need to Know for 2026

Understanding how NCS subsidies are calculated helps you answer parent queries accurately and manage your billing correctly. Here is a breakdown of the current subsidy structure:  

Universal Subsidy

The universal subsidy is available to all families regardless of household income. It is not means-tested. The current rate is €2.14 per hour for a maximum of 45 hours per week. This equates to a maximum weekly saving of €96.30 per family. There is no change to the universal subsidy rate confirmed for September 2026 at the time of writing.  

Income Assessed Subsidy

The income-assessed subsidy is means-tested and provides a higher hourly rate to qualifying families. The rate depends on four factors:  

• The family’s reckonable annual household income after tax, PRSI and USC
• The child’s age and educational stage
• The number of children in the family who are in childcare
• Whether the parent is in work, study or training

  The maximum income-assessed subsidy rate is currently €5.30 per hour for children in the youngest age bands. Families with reckonable incomes below the lower threshold receive the full subsidy rate. Those between the lower and upper thresholds receive a graduated rate that reduces as income increases.  

Sponsor Subsidy

A small number of children are referred to the NCS through a Sponsor body, typically through child welfare, child protection or family support services. In these cases, there is no income assessment and the parent pays no childcare fees at all. The provider receives the full fee from the State. If you receive a sponsored referral for a child in your service, the process is managed through the Early Years Hive in the same way as a standard NCS registration.  

How to Register as an NCS Provider

To receive NCS subsidies for children in your care, your service must be contracted into the NCS with the Department of Children, Disability and Equality. If you are already participating in Core Funding and ECCE, you are likely already registered. If not, here is the step-by-step process:  

• Confirm your service is registered with Tusla and has an active Service Reference Number on the Early Years Hive
• Log into the Early Years Hive and navigate to the Programmes tab
• Select the NCS programme and complete the funding agreement activation process
• Ensure your fee schedule and service calendar are fully updated on the Hive before activation
• Once activated, your service will appear on the Childcare.ie national directory as an NCS participating provider
• You will receive a contract confirmation from the Department or Pobal confirming your NCS participation for the programme year

  NCS contracts are issued annually and must be renewed each programme year. If you miss the activation window, contact the Early Years Provider Centre at eypc@pobal.ie or call 01 511 7222 during business hours.  

How Child Registration Works on the NCS for Providers

Once your service is contracted into NCS, here is how the child registration process works on a day-to-day basis:  

• A parent applies for an NCS subsidy through MyGovID at ncs.gov.ie. The application is assessed by Pobal. The parent receives a unique Childcare Identifier Code Key, known as a CHICK, once their application is approved.
• The parent provides their CHICK to your service. You use this code to register the child’s childcare hours on the Early Years Hive under your NCS registrations.
• Once you have submitted the registration on the Hive, the parent receives a notification and must confirm that the registered hours are correct. The subsidy payment only begins once the parent has confirmed the registration.
• Each week, you submit a claim on the Hive for the hours the child attended. Claims must be confirmed by the parent or guardian. If a parent does not confirm a claim, you will not receive payment for that week.
• Subsidies are paid monthly in arrears by Pobal directly into your nominated bank account. The NCS subsidy is separate from your ECCE capitation and Core Funding payments.

  If a child’s hours change during the year, either you or the parent can request an amendment to the registration through the Hive. Both parties must agree to any change before it takes effect. Parents should give at least four weeks notice of their departure from a service, and you should end the NCS claim on the Hive on the appropriate date.  

What the September 2026 Changes Mean for Your Service Day to Day

When the new income thresholds come into effect in September 2026, you can expect the following practical impacts on your service:  

• More parents currently paying the full fee will apply for and receive an income-assessed subsidy. This means your effective parent-paid fee income will reduce, while your State-paid NCS income increases. Your total fee income per child should remain the same, but the payment source will shift.
• You will receive more queries from parents about the NCS, particularly from families who previously did not qualify or who received a minimal subsidy. It is worth familiarising your staff with the basic application process so they can guide parents to ncs.gov.ie and the NCS Parent Support Centre on 01 906 8530.
• Demand for places at NCS-contracted services is expected to increase. The Department has acknowledged that the fee reductions and expanded subsidy access will drive increased demand and is working to increase childcare supply through the Building Blocks Scheme and other capital investment programmes.
• Your Hive administration workload will increase as more children are registered under the NCS. Ensure you have clear internal processes for collecting CHICK codes from parents, submitting weekly claims, and following up on parent confirmations promptly.
• Any child receiving an NCS subsidy at your service must be attending a Tusla-registered service. Maintaining your Tusla compliance is directly linked to your ability to participate in the NCS.

 

The CHICK Code: What It Is and How It Works

The Childcare Identifier Code Key, universally referred to as the CHICK, is the unique identifier that links a child’s NCS award to a specific childcare provider for a specific programme year. Every parent who applies for and receives an NCS subsidy award is issued a CHICK through the NCS portal. From 2026, the Government is moving toward a longer-term CHICK that will not need to be renewed annually. This change, confirmed in the Shaping the Future Action Plan, is designed to reduce administrative burden for both families and providers. It means a child will have a single CHICK that follows them through their childcare journey rather than a new code being issued each programme year. Full details and implementation dates will be confirmed by the Department closer to launch. As a provider, the CHICK is the code you enter on the Early Years Hive to link a child’s approved NCS award to your service. You cannot begin receiving NCS subsidy payments for a child until you have their CHICK and have completed the registration process on the Hive. Always ask parents for their CHICK before their start date and complete the Hive registration in advance of their first day to avoid payment delays.  

Parent Queries You Will Receive in 2026: How to Answer Them

With the September 2026 changes attracting significant media coverage and government communications, many parents will come to you with questions. Here are the most common ones and how to answer them:  

• Will my fees go down in September 2026? Possibly yes, if the parent now qualifies for a higher income-assessed subsidy. Direct them to the subsidy calculator on ncs.gov.ie to see their estimated new rate and advise them to apply or reapply from early September 2026.
• Do I need to reapply for NCS? Existing NCS subsidy holders will generally have their awards updated automatically. However, families who were previously above the income threshold will need to make a new application. Advise all parents to check their NCS award status in September 2026 and contact the NCS Parent Support Centre if they have questions.
• My child is starting in September, how do I apply? Direct them to ncs.gov.ie and advise them to apply as early as possible, ideally before the summer, as Pobal needs time to process income-assessed applications. They will need a verified MyGovID to apply online.
• How much will I save? The saving depends on the family’s income, the child’s age and the number of hours of childcare used. The subsidy calculator at ncs.gov.ie provides an accurate estimate based on individual circumstances. You cannot confirm exact amounts on behalf of Pobal.

 

Staying NCS Compliant in 2026

Participating in the NCS comes with a set of ongoing provider obligations. Failure to meet these can result in NCS payments being withheld or recouped:  

• Your service must remain registered with Tusla throughout the programme year
• Your fee schedule on the Hive must accurately reflect the fees you charge families
• You must submit weekly claims on the Hive for each NCS registered child
• You must follow up promptly with parents who have not confirmed their weekly claims
• You must end NCS claims on the Hive when a child leaves your service
• You must not charge parents the NCS subsidy amount as a top-up or additional fee
• Your service calendar on the Hive must be kept up to date, including any closure weeks

  At Early Years Shop, we stock a range of resources that help Irish early years providers stay organised, compliant and inspection-ready throughout the NCS programme year. From policies and records templates to display posters showing your NCS participation and fee structure, we have the tools to keep your service running smoothly.