Parents would pay €10 a day for childcare under a Sinn Féin plan which will feature in the party's election manifesto.
Sinn Féin unveiled the plan on Thursday, with party leader Mary Lou McDonald saying the cost of childcare has put "an extraordinary burden" on families.
Ms McDonald said that the current system is not working, but that an additional €345m in exchequer spending would allow families to be charged just €10 a day, meaning a €200 per month outlay on a cost that is currently estimated at €800 per month per child.
"It's clear to everyone, especially those parents footing the big bills, that the model of childcare provision employed by the State currently simply isn't working. We see this not only in the high costs but in the lack of spaces available in the system with thousands of children on waiting lists. This often means that parents must rely on family and friends to look after their children," she said.
Ms McDonald said that investment in the sector was the "smartest investment" a state can make.
The party's spokesperson on children Clare Kerrane said that part of the party's plan would be to increase the hourly wage of childcare workers by €1.50 initially, with €53.8m ring-fenced for wages, a €15.15 rate which Ms McDonald called "a start".
Sinn Féin's finance spokesperson Pearse Doherty said that the State is running surpluses and should put money back into people's pockets.
"There are still billions of euro of surpluses that the State has, so there’s no need to be increasing taxes on people," he said.
“This is also, at the heart of it, a cost-of-living measure.
Childcare has become a major political issue in recent days, with Fine Gael pledging to put a state-provided service at the heart of its election manifesto.
However, Childhood Services Ireland (CSI), the Ibec group representing early learning and care providers, has expressed concern about what it says is the threat of nationalisation of the sector.
The group said that "the current partnership for the public good is failing, largely due to underinvestment in the sector and a lack of meaningful two-way dialogue between providers and the Government" but said that those working in the area must be involved in the creation of a new system.
CSI director Stephanie Roy said that the "debate confirms the view of providers that the current system is not working".
“Any solution to the current early childhood education and care sector must be co-created with providers for it to succeed. Various political parties are proposing a radical policy of introducing a nationalised system of childcare," she said.
"The early childhood learning sector agrees that reforms are needed, but it can only happen with meaningful two-way dialogue between providers and Government."
Ms Kerrane said that she has engaged with the sector and believes that affordability and capacity are key issues.