The Finance Minister Pascal Donohoe has said he hopes a €1,500 payment to childcare providers will reassure parents that creches will remain open next year.
Yesterday, the Children's Minister Katherine Zappone announced the funding, after industry representatives raised serious concerns that some providers could shut.
They say the recent withdrawal of one of two insurance providers has left some struggling to get cover or facing increased premiums.
However, the Finance Minister believes the new funding will help.
He said: "I and Minister Zappone are well aware of the anxiety and stress that many families are facing as they worry about the new year.
"This will make the desired change happen and it should ensure that creches are open for the new year and Minister Zappone has been working hard now over the past number of days to make this intervention."
