Families across Northern Ireland have received major help with their childcare costs, thanks to the Childcare Subsidy Scheme introduced in September 2024. According to new data published by the Education Minister on May 27, the scheme has already supported over 16,000 children and helped parents save nearly £8 million on childcare expenses in just seven months.
The scheme was launched to make childcare more affordable for working parents, especially those with children below primary school age. When combined with the existing Tax-Free Childcare (TFC) programme, families can save up to 35% on their childcare bills.
How the Scheme Works
The Northern Ireland Childcare Subsidy Scheme (NICSS) gives a 15% discount on eligible childcare costs. On top of that, parents can receive an additional 20% reduction through the Tax-Free Childcare programme, making a real difference to their monthly budget.
This financial help is available for parents who are working and already qualify for Tax-Free Childcare, and who use registered childcare providers such as daycares, childminders, or playgroups.
Childcare Cost Savings: A Look at the Numbers
The new data shows that most parents using this scheme pay just under £400 a month for childcare after the NICSS and TFC savings are applied. This is because most of these families use part-time childcare services.
However, for full-time childcare—such as daycare five days a week—the average monthly cost is around £1,054. After the scheme’s discounts, the cost comes down to roughly £739 a month, giving families significant relief.
NICSS Subsidy Cap and New Changes
From September 2024 to March 2025, the NICSS subsidy cap was set at £167 per month per child. Data shows that only 2.3% of children went over this limit, meaning most families received the full 15% discount on their childcare costs.
To keep up with rising costs like higher staff wages and increased National Insurance Contributions, the Education Minister raised the subsidy cap to £184 per month from April 2025.
Scheme to Expand for School Age Children
Another big announcement is that from 1 September 2025, the Childcare Subsidy Scheme will also include school-age children. This decision is expected to help even more working families across Northern Ireland who struggle with after-school care and holiday childcare costs.
The Minister confirmed that details on how parents of school-age children can apply will be released in the coming weeks.
The Childcare Subsidy Scheme is proving to be a big success in Northern Ireland, offering real financial help to thousands of working families. With more than 16,000 children already registered and £8 million saved so far, the scheme is clearly making a positive impact. The upcoming expansion to school-age children means that even more parents will benefit. If you’re a parent or childcare provider who hasn’t registered yet, now is the time to look into it and take advantage of the support.
FAQs
Who is eligible for the Northern Ireland Childcare Subsidy Scheme?
Working parents who are eligible for Tax-Free Childcare and have at least one child below primary school age using registered childcare can apply.
How much can parents save through the NICSS and Tax-Free Childcare combined?
Parents can save up to 35% on childcare costs—15% from NICSS and an additional 20% from Tax-Free Childcare.
What is the current subsidy cap under NICSS?
From April 2025, the NICSS subsidy cap has been increased to £184 per child per month.
When will the scheme be extended to school-age children?
From 1 September 2025, the NICSS will also cover children of school age. Registration details will be shared in the coming weeks.
Which childcare providers are eligible under the NICSS?
Registered providers including daycares, playgroups, childminders, and Approved Home Childcarers can deliver NICSS-supported childcare.
