In what is viewed as a significant move, the State has essentially agreed to pay all wages of crèche workers for the next three months.
In return, childcare providers will not be able to charge parents from this month on and they will have to open their books to Revenue.
The announcement means that childcare worker wages have been topped up a further 30% beyond the 70% level of pay up to €410, announced by Government today.
The Children's Rights Alliance has welcomed news that parents will not be asked to pay crèche fees for up to three months under the Government scheme that will see childcare worker wages paid.
Providers were informed of the measure by the Department of Children and Youth Affairs via conference call today.
The CEO of the Children's Rights Alliance Tanya Ward welcomed the move by the department tonight.