The Minister for Children Katherine Zappone has confirmed that childcare providers will receive an additional once-off payment following a year of pressure on the sector.
The payments will average at €1,500 per provider depending on their service size.
The total extra funding will come to €7 million.
Minister Zappone said the payments will be given in recognition of the extra time required by providers of early learning and care programmes to complete administrative work.
It also recognises the time spent on activities done outside of contact time with children, such as preparing materials and informing parents how they might benefit from various childcare schemes.
More than a thousand providers were impacted by increased insurance premiums following the exit of one of the main companies - Ironshore - from the Irish market in July.
A number of childcare providers have claimed insurance quotes they are now getting are unsustainable, and parents have also raised fears they could be left without a childcare provider in January if creches cannot afford the increased premiums.
However, the Taoiseach Leo Varadkar reassured parents that creches will not have to close in the new year because of the insurance issues.
Minister Zappone acknowledged that 2019 had been "a challenging year" for the childcare sector.
She said: "I would like to particularly acknowledge the pressures services have faced in 2019 and to acknowledge the pressure and stress that deadlines bring.
"I hear this clearly from the sector."
She said the once off Programme Support Payment announced today will be given to providers in the coming days.
This is an additional payment on the one already given to providers for this year.
