CMG 2026: Winners, Losers, and the True Cost of Childcare

The recent reform of the Complément de libre choix du mode de garde (CMG) was expected to revolutionize childcare costs, balancing expenses between daycare and nanny services. However, several months post-implementation, the results reveal a mixed bag: while some families experience relief, others find their childcare budgets stretched thin.

Winners: Low-Income Couples and Families with Disabilities

The reform has successfully met the needs of certain parents, particularly those employing a registered nanny at the reference rate of €4.85 per hour. For these families, often earning close to two minimum wages, the out-of-pocket costs are now comparable to those of a spot in a collective daycare. This marks the end of the financial "double penalty" for those who could not secure a place in municipal childcare.

Another positive change is the more equitable calculation for families affected by disabilities. Now, a child with a disability counts as two when calculating aid, which significantly increases the amount of CMG received. Additionally, single parents with children over six years old can breathe a sigh of relief, as the assistance is now extended until the child turns twelve, a notable increase from the previous limit of six years.

The Downside for Single Parents and Higher-Income Families

However, not all families are benefiting. Single parents with children under three years old are among the hardest hit by this new system. The removal of the 30% increase in the CMG and the 40% rise in income ceilings has created a significant financial gap. For instance, a single parent earning €1,600 net may lose approximately €42 per month for full-time childcare. This amount is not insignificant, especially for those managing a household alone.

Higher-income couples are also feeling the pinch, with many losing access to the CMG for nanny care entirely. Nevertheless, there is a distinction for home-based care: the reform favors families employing a nanny for over 65 hours a month, potentially lowering their out-of-pocket costs and making shared or in-home care more accessible for wealthier families.

Middle-Class Families Caught in the Middle

For the majority of dual-income couples, there is a prevailing sense of diminished purchasing power. A survey conducted by Unaf indicates that 63% of parents feel they are worse off. This dissatisfaction often stems from the disparity between the CAF's "reference rate" and actual market rates. If a nanny charges more than the regulated €4.85—common in larger cities—families find their financial assistance insufficient, leading to skyrocketing out-of-pocket expenses.

Some households report an increase in childcare costs of over €1,200 annually. In response to these steep expenses, families are making drastic decisions. Approximately 12% of parents have already reduced their child's care hours, and others are considering cutting back on their own work hours due to financial constraints. What was intended as a simplification has become a complex financial puzzle that weighs heavily on work-life balance.

Ultimately, while the reform aims to standardize childcare costs, it inadvertently creates new disparities that affect families where it hurts the most. The lingering question remains: can we truly discuss the freedom of choosing a childcare method when budget constraints so heavily influence our decisions?