Education Minister: Childcare subsidy plus tax-free childcare ‘will provide up to 32% reduction' on bills

Belfast Telegraph

15-05-2025

'I pledged to help working parents with the cost of childcare and I am very pleased to announce that the Northern Ireland Childcare Subsidy Scheme will now be extended to include school age children from September 1, 2025,' Paul Givan said.
'Last year, my priority was to develop a subsidy scheme that would reduce childcare costs for the parents of very young children, who often experience the greatest costs. So far, the Childcare Subsidy Scheme has saved Northern Ireland parents approximately £8m which they would have had to pay in childcare fees.
'I now want to build on this and support a much greater number of parents with the costs of childcare. Since the scheme launched in September 2024, there have been repeated calls to extend it to school-age children.
'This funding boost will allow us to do this and provide support for a much larger group of working parents. It is estimated the number of children who could benefit from the discount will now increase by 60%, from the current 15,000, to approximately 24,000.
'This means that the working parents of school-age children will now receive the 15% subsidy, up to the capped amount, on their childcare bills. When this is combined with tax-free childcare, it will provide a reduction of up to 32% on childcare bills.'
'I am now able to expand vital services such as Sure Start, the Pathway Fund, Toybox and the Bookstart Baby Programme' he added.
'Over the next year, I will also continue the expansion of pre-school education towards the goal of providing 22.5 hours per week for all children in their immediate pre-school year. At least an additional 100 settings providing the next cohort of 2,000 children with a full-time place will be available by September 2026.
'Combined, the package of support reflects my ongoing commitment to prioritise early years, given the impact this can have on children's future outcomes, particularly those from more disadvantaged backgrounds or with additional needs.'
Reconfirming his intention to bring forward a comprehensive Early Learning and Childcare Strategy by autumn 2025 which will set out an ambitious plan for the longer-term, the minister added: 'There is much that could be done, but there is a limit to what can be achieved this year with the funding available.
"Over the past year, we have made real progress across a number of areas and the measures I am announcing today will maintain that momentum. I look forward to publishing an Early Learning and Childcare Strategy later this year.'
While welcoming the investment, SDLP MLA Sinéad McLaughlin warned that any savings being made must not be swallowed by increases in the cost of childcare.
'This will lower childcare bills for thousands of families with school-age children,' the Foyle MLA said.
'However, the SDLP has been clear that when it comes to childcare support, the NICSS can only be a beginning.
'The reality for parents is that much of this saving has already been swallowed up by increased childcare bills. We are still waiting on a businesses support scheme from the Department for the Economy to help providers and, until that happens, costs will continue to rise and this support will diminish.
'Ultimately, until we see a fully-funded childcare strategy, we will continue to see parents' careers affected and women being forced from the workforce with severe consequences for our economy.'
Alliance Education spokesperson Michelle Guy said an Early Learning and Childcare Strategy remains essential for long-term transformational change.
'We have long called for the Childcare Subsidy Scheme to include school-aged children, as well as for further support for Sure Start and programmes like the Pathway fund who do such crucial work, so it is good that the Education Minister has acted on those calls,' she said.
'The cost of childcare continues to be a leading concern for so many families, and while this announcement does not increase the 15% subsidy rate, it will expand the number of families who can avail of support, and further help those with multiple children.
'We continue to believe that the subsidy rate should be increased further and that the UK Government should act to expand the level of tax-free childcare.
'This is a welcome direction of travel, however we still await the much-delayed Early Learning and Childcare Strategy, which is crucial to securing long-term transformational change for children and families.
'A strategy that, for example, should include plans to expand the NI Childcare Subsidy Scheme further, as the spending review will have been completed and multi-year budgets will ideally be in place.'