Childcare subsidy scheme to be extended to school-age children

A subsidy scheme to help with the cost of childcare will be extended to school-age children in Northern Ireland from September.

Education Minister Paul Givan made the announcement as part of a £55 million investment in early learning and childcare agreed following a meeting of the powersharing Executive on Thursday.

He said: “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 be extended to include school-age children from 1 September 2025.”

The scheme currently offers financial relief to households with children under primary school age.

The minister added: “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 £8 million 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.

“Today’s 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.”

First Minister Michelle O’Neill said helping parents with childcare costs was a priority for the Executive.

She said: “That is building upon commitments we have already made as an Executive to prioritise the issue of childcare and ensure that we are supporting more parents with this huge burden that many households face.”

Deputy First Minister Emma Little-Pengelly said: “Since taking up office we have been very clear that making childcare more affordable is a priority.

“The measures agreed takes that a step further, building on the good work that had been done by the Education Minister on this last year.”

She added: “This is something I know that will be welcomed by many families, particularly those under financial pressure.”

The Education Minister said the investment agreed by the Executive would allow him to expand other early years services such as Sure Start, the Pathway Fund, Toybox and the Bookstart Baby Programme.

He said: “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.”

Mr Givan said he would bring forward a comprehensive Early Learning and Childcare Strategy by autumn.

He 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.”