Extra £17 a month on childcare subsidy cap ‘nowhere near enough’ for parents paying thousands

Paul Givan announced that the Northern Ireland Childcare Subsidy Scheme (NICSS) will continue into 2025/26 and that the subsidy cap, the maximum amount that can be claimed per child, has also been increased to reflect the anticipated rise in childcare fees from April 2025.

It means parents will be able to claim up to £184 per child, rising from the previous £164.

There will also be a rise in the administrative payment paid to providers delivering the scheme.

While the announcement was welcomed in the Assembly, those campaigning for more help with childcare costs are still being priced out of the workplace, with many parents opting to leave work as they are unable to afford childcare costs.

Campaign group Melted Parents NI said the announcement will do little to assist parents, who continue to face childcare bills which can mount to more than £10,000 every year.

They added that the cost is making some families choose between working and leaving their careers as they’re unable to meet the costs — and that in reality families will be ‘worse off than before’.

“We genuinely can’t comprehend how the Education Minister thought this cap increase would be enough for families with the highest childcare bills,” said a spokesperson for Melted Parents NI.

“For some parents, their bills per child for full-time childcare are reaching £1500 a month. This 10% increase in the cap is being framed as significant, yet it amounts to a maximum of just £17 more per month for those facing bills well over £1,000. An extra £17 a month won’t keep parents in work or prevent them from falling into debt due to childcare costs,” the group added.

“We need meaningful action to lower families’ bills. Due to recent increases, the 15% subsidy has already been wiped out for many families leaving them worse off than before the subsidy was introduced.”

Parents are spending an average of over £10,000 every year on childcare according to Employers for Childcare in a 2023 survey, though fees have increased further in the last year.

Melted Parents NI are planning a march for childcare in Belfast on Saturday, April 5 to highlight their growing concerns.

The march will see parents walk from Writer’s Square to Belfast city centre at 10.30am.

The group says the reality remains that childcare costs are higher than rent and mortgages, with many parents leaving an already under pressure workforce as they can’t afford the rising costs.

Making the announcement during Education Questions in the NI Assembly on Monday, 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 £14 million since September 2024.

“I am therefore pleased to announce that the NICSS will continue into 2025/26.”

The Minister said he was aware that many childcare providers are preparing to increase their fees further over the coming weeks and to offset that added: “I am also increasing the subsidy cap by 10% from April 1, 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 Childcare.

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.”