Around 40% of childcare providers haven't signed up to the new affordable care scheme.

It means that thousands of parents could miss out on a grant of over 1000 euro, with some forced to move their children to other creches.

The scheme comes into effect on Friday to coincide with the beginning of the school year. Announced as part of budget 2017, it will provide parents with a non means-tested subsidy of up to 1040 euro a year for children between 6 months and three years.

But out of 4,484 eligible providers, only 2,626 have signed up.

Some childcare providers have said they won't participate because of administration costs and a lack of information about it.

While there are reports that creches taking part are hiking fees to subsidise costs.

Kim Buckley has this report: