Childcare subsidy scheme to be extended to primary school children

A subsidy scheme to help with the cost of childcare will be extended to primary school-age children from September 2025.

On Thursday, Education Minister Paul Givan announced a £55m package of measures for early learning and childcare that will include an extension of the Northern Ireland Childcare Subsidy Scheme.

The scheme came into force in September and currently offers financial relief to households with children under primary school age.

The scheme will be extended to include children in primary school from 1 September 2025.

It is estimated the number of children who could benefit from the discount will increase by 60% from the current 15,000 to approximately 24,000, according to the education minister.

"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," Givan said.

"When this is combined with tax free childcare, it will provide a reduction of up to 32% on childcare bills."

People who have children in full-time childcare would be eligible to receive up to £184 in support, per child, per month, according to Givan.

The subsidy scheme is provided through registered childcare providers - with discounts passed on to parents.

Speaking to BBC Radio Ulster's Talkback programme on Thursday, Givan said the expansion of the scheme will "help inform some of the decisions parents would take in balancing how much they work compared to offsetting the cost of what childcare is.

"Some decide it's not worth working or they reduce their hours because it is more expensive to have childcare and this will help inform this decision."

Sandra McLean, a single mother, had three childminders for her children at various stages.

"I simply couldn't have worked if I hadn't had the childcare," Ms McLean told BBC News NI.

"I dropped off at eight o'clock in the morning and picked up at six every night. It was completely crucial, I couldn't have kept a roof over our heads as a single mum without that support," she said.

Ms McLean said current childcare costs are "scandalous", adding it is "really important" costs are going to be subsidised.

Cara Poole has two children, one in P5 and one in P7.

She told BBC News NI she relied a lot on her parents for support "to try and save a little bit of money".

She said childcare costs were "ludicrous".

"It wouldn't have been worth me working had I not have had grandparents to be able to help out and do that."

She said Thursday's announcement is "absolutely fantastic".

"I know that it would have been really beneficial for me."

Diane Koplewsky, CEO of Sleepy Hollow Group, which specialises in childcare, is "delighted" with the expansion of the scheme.

"There will be administration for providers, but for us the main thing is for parents, working parents, being able to remain in work," Ms Koplewsky said.

"We're delighted we're able to do this. The administrative burden is way less of an impact to us than the parents who are getting the savings."

Rebecca Harper, from Melted Parents NI, welcomed the expansion of the scheme, but added that there are some flaws with it.

"While this is a celebratory day for families who are, quite frankly, crippled with childcare, you're talking thousands of pounds a month, for some families, anything is welcomed and anything is supported," she told BBC Radio Ulster's Evening Extra programme.

"But it's important to remember that a childcare strategy must reflect the lived experience of families, the cost of families."

Ms Harper said £184 a month is "fantastic", but added: "When your bill is £2-3,000 a month it doesn't really touch the sides at the same time.

"It's a step and it's a step in the right direction but we need to see radical, transformative investment in childcare that matches the rest of Europe."

Givan announced he is also expanding early years services such as Sure Start, the Pathway Fund, Toybox and the Bookstart Baby Programme.

"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," he said.

"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."

Givan said work remains ongoing on a planned childcare strategy and he intends to bring it to the Executive in autumn.

"The first and foremost action I had to take was real-time, tangible in terms of financial support in setting up these schemes," he said.

The cost of childcare can be a huge pressure facing working families.

Something that was apparent in the more than 5,000 responses to a survey commissioned by department on childcare costs at the end of last year.

In it, 69% said they had to cut back their working hours due to childcare costs and about half (48%) of parents considered their costs unaffordable.

The costs also varied depending on the age of the child, with typical childcare costs at their highest for the first two years of a child's life at more than £500 per month.

Location also came into play with a £150 difference in the average monthly bill between the highest in Belfast and Derry City and Strabane, and the cheapest area, which was Causeway Coast and Glens.

The survey also suggested that 9% of households were using the subsidy scheme and when asked how much it saved them the most common response (22%) was a reduction of £61 to £90 per month.