Changes in childcare support for working parents

Most working parents are eligible for some form of support towards their registered childcare costs, yet many don’t realise this and are missing out on the financial help that’s available, whether that is through Universal Credit or Tax-Free Childcare and the Northern Ireland Childcare Subsidy Scheme. Parents could be saving £1,000s on their childcare bill, depending on their situation.  

Universal Credit  

Universal Credit is a means tested benefit, through which families can claim back up to 85% of their registered childcare costs. The maximum childcare costs allowed for Universal Credit are now: 

• £1,193 per month for 1 child (parents can claim back £1014.63 per month)
• £2,046 per month for 2 or more children (parents can claim back £1,739.37 per month) 

This is a vital form of support for working parents who have seen their childcare bills significantly rise in recent years.  

Universal Credit takes into account savings as well as household income, so not all families will be eligible. For those that aren’t, Tax-Free Childcare may be an option.   

What is Tax-Free Childcare? 

Through Tax-Free Childcare eligible working families can get 20% of their registered childcare costs paid by the Government, up to a maximum of £2,000 per year per child – or £500 each quarter. Families can save up to £10,000 per child per year through Tax-Free Childcare. 

To be eligible, both parents need to be in employment or self-employment (one parent in a single parent household), earning between £183.04 per week (equivalent to 16 hours working at the National Living Wage) and £100,000 per year each. Savings are not considered when determining if a parent is eligible for Tax-Free Childcare. 

Additional support for children under primary school age 

Parent of children under primary school age living in Northern Ireland, and who are using Tax-Free Childcare could also benefit from the Northern Ireland Childcare Subsidy Scheme (NICSS). The NICSS will support eligible parents by paying 15% of their childcare costs, up to a maximum of £167 per month. The scheme has currently been confirmed until March 2025. Find out more here.  

Survey for parents using registered childcare 

The Northern Ireland Statistics and Research Agency (NISRA) has issued invitation to 15,000 families using registered childcare in Northern Ireland to collect information on usage, cost, quality, and whether childcare has influenced work, education and training decisions of parents/ guardians. Not all households with children will receive this invitation but if you have been included in the sample of households, we would encourage you to complete the survey as this information will help to shape the NI Executive’s new Early Learning and Childcare Strategy, which is currently in development.  

Ensure your family is accessing all the support you are entitled to 

With these changes in childcare support, we know it can be difficult for families to work out what is best for them. In many cases, it may be that parents need to take into account their future childcare needs, as well as what they are using currently, in order to make the best decision for their family. We would encourage all working parents to call the Family Benefits Advice Service regularly for a ‘better off’ calculation – to make sure they aren’t missing out on financial support they are entitled to. Get in touch by calling 028 9267 8200 or email  hello@employersforchildcare.org for free, impartial and confidential advice