From September, childcare fees for parents paying the highest rates will be capped at €295 per week.
With the National Childcare Scheme subsidy, many parents will effectively pay around €198 weekly, closer to the national average of €197.
The cap applies to full-day care of 40 to 50 hours and follows a fee freeze introduced in 2022.
State funding for childcare will also rise by €60 million next year.
