Education Minister announces continuation of Northern Ireland Childcare Subsidy Scheme

Education Minister Paul Givan has today announced that the Northern Ireland Childcare Subsidy Scheme (NICSS) will continue into 2025/26.

The NICSS subsidy cap, which is the maximum amount that can be claimed per child, has also been increased to reflect the anticipated rise in childcare fees from April 2025 while the administrative payment paid to providers delivering the scheme has also been raised.

Paul Givan said: “Since the scheme launched in September, it has helped ease the financial burden on thousands of parents throughout Northern Ireland, providing over £6.5million in savings for working families. 

“This is £6.5million additional money Northern Ireland parents have in their pockets as a direct result of the scheme.  When combined with Tax-Free Childcare, it is estimated that these working families will have saved over £14million since September 2024.

“I am therefore pleased to announce that the NICSS will continue into 2025/26. I am also increasing the subsidy cap by 10% from 1 April 2025 to ensure that the vast majority of parents continue to receive the full subsidy available.”

The NICSS was first introduced in September 2024 and provides a 15% subsidy on childcare costs to support working parents with children who have not yet started primary school.

It is delivered by registered childcare providers participating in the Tax-Free Childcare (TFC) scheme, including daycares, playgroups, childminders, and Approved Home Childcares.

The Minister continued: “We are also increasing the administrative payment to providers who facilitate the scheme in recognition of their increased operating costs and to ensure these costs are not passed on to parents.

“The NICSS continues to provide valuable support to working families and I will consider what more can be done when my budget for next year is confirmed. I would encourage any parents or providers who have not yet signed up to register and take advantage of the scheme.”

Further details on the revised cap and provider payments will be communicated directly to registered providers by the scheme's administrator, the Early Years Organisation, in the coming days.

Notes to editors:

1. The NICSS is delivered by the Early Years Organisation on behalf of the Department of Education. Childcare providers and parents can register for the Scheme at: https://www.early-years.org/nicss
2. The NICSS is focused on working parents, based on Tax Free Childcare (TFC) eligibility, with children who have not yet started primary school. These tend to be the highest users of childcare and therefore incur the greatest costs. The NICSS provides a 15% subsidy towards parents' bills (paid directly to providers to reduce upfront costs).  The parent can then claim 20% TFC on the remaining bill.
3. The subsidy can be offered by eligible registered childcare providers who are signed up to the TFC scheme and can register a child below primary school age.  This includes nurseries, playgroups, and childminders.  It also covers Approved Home Childcare (AHC) providers who are approved by Department of Health (DoH). You must also have a TFC account for your child. It does not apply to unregistered or informal childcare arrangements. 
4. It is a decision for eligible childcare providers to decide whether or not they wish to offer the subsidy to their parents. The NICSS is not mandatory for providers, therefore not all providers may decide to offer the subsidy.
5. The subsidy provided to parents can be claimed back by providers directly from the scheme administrator.  This ensures that the provider can offer the subsidy without any financial loss. 
6. The Frequently Asked Questions (FAQs) for the Northern Ireland Childcare Subsidy Scheme (NICSS) are updated regularly, and can be accessed at: https://www.education-ni.gov.uk/publications/frequently-asked-questions-early-learning-and-childcare-measures-2024-25