Everything you need to know as NI Childcare Subsidy Scheme opens for applications
The scheme will cover school-age children from this September for the first time
Applications have now opened for a scheme helping working parents in Northern Ireland cope with spiralling childcare bills.
On Thursday, May 15, it was announced that the Northern Ireland Childcare Subsidy Scheme (NICSS) is being extended to cover school-age children from this academic year, which will be welcome news to many families.
The scheme is a Department of Education initiative which was first introduced in September 2024 and was designed to reduce the childcare costs of eligible working parents by 15% for all qualifying children.
We have put together a guide with all the information from Early Years, who administer the scheme, about what the scheme is about, how to apply, and who is eligible.
How does the Northern Ireland Childcare Subsidy Scheme work?
The scheme is designed to help working parents with the affordability of childcare costs. Early Years has been appointed to administer the scheme on behalf of the Department of Education.
All eligible parents or guardians automatically receive 15% off their bill from their provider up to a maximum of £184 per month. The subsidy can be offered by eligible childcare providers participating in the Tax-Free Childcare (TFC) scheme, including daycares, playgroups, childminders, and Approved Home Childcares.
Who is eligible for the scheme?
It was initially introduced for parents with children who had not yet started primary school. However, on May 15, it was announced it would be extended to cover school-age children from September 1, 2025.
At the moment, any parent receiving TFC for a child who has not yet enrolled in primary school will be eligible to participate in the scheme provided their childcare provider is signed up with HMRC as a TFC provider.
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.
It means 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.
If you are unsure about your eligibility for TFC, please contact HMRC Childcare Service helpline on 0300 123 4097.
How to apply for the scheme?
Registration for eligible children opened the week commencing July 21. The registration process for school aged children is simple and will take around 10 minutes to complete.
To apply, firstly ask your childcare provider if they are registered for the scheme as only registered and eligible providers can apply the NICSS subsidy.
You need to have the following information ready before starting the registration process:
A. Tax Free Childcare Payment Reference for your child. This number can be found on correspondence from HMRC and is typically a combination of: (Initial letter of their first name)(First three letters of their second name)(number characters)e.g. for Adam Smith this could be ASMI#####.
Some parents don’t use the online TFC system and therefore will not have been allocated with a Tax-Free Childcare Payment Reference. If this is the case, please email nicssparent@early-years.org and to be given a unique reference number that you can use to register your child.
B. Copy of the TFC quarterly confirmation letter/notice for your child. Please take a screen shot or screen grab of this communication from HMRC which clearly shows:
1. name of your child,
2. the quarterly expiration date
You will be required to upload this document as part of the registration process. (If you are waiting on HMRC to approve your current eligibly and don’t have a current approval document, use the most recent one for now.)
If you have more than one eligible child, you will need to complete the process separately for each child.
You then need to access the NICSS portal, to register your child on the scheme. Watch the video below and click here to register your child.
Which childcare providers can offer the subsidy?
The subsidy can be offered by eligible registered childcare providers who are signed up to the TFC scheme and can register a child below primary school age. This includes nurseries, playgroups, and childminders.
It also covers Approved Home Childcare (AHC) providers who are approved by DoH. You must also have a TFC account for your child. It does not apply to unregistered or informal childcare arrangements.
The subsidy scheme is not mandatory for providers, and some may choose not to offer the subsidy.
If your childcare provider is registered to provide the subsidy and you are an eligible parent, any childcare used from September 1 onwards should be eligible for the subsidy irrespective of whether it is billed in arrears or in advance.
For even more information on the scheme, visit the Early Years website by clicking here.
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