8th June 2026
Over 17,200 families in Northern Ireland now saving money on childcare through Tax-Free Childcare
Figures recently released by HMRC show the growing number of families who are using Tax-Free Childcare to help with their childcare costs, particularly in Northern Ireland.
There are a number of forms of support available towards registered childcare costs, one of which is Tax-Free Childcare. Over the years the uptake for Tax-Free Childcare has been low in Northern Ireland. However the numbers have been steadily increasing, with a 10% rise in the number of families claiming this support in the past year. This is once again the highest percentage increase in Tax-Free Childcare users of all the UK regions, with the average rise over the year across the other UK regions being only 3%.
Figures recently released by HMRC show that across the UK there were 601,015 families using their Tax-Free Childcare accounts in March 2026, of these 17,215 families were in Northern Ireland, this is an increase of 1,555 in Northern Ireland over the year.
These accounts have been used to pay for childcare for total of 744,315 children across the UK, of these 22,895 children were in Northern Ireland. This is an increase of 12% in Northern Ireland since March 2025. This is again the highest percentage increase in Tax-Free Childcare users across the UK regions, with the average rise across the other UK regions being only 3% for the same time period.
Northern Ireland Childcare Subsidy Scheme
One driver for this higher uplift of Tax-Free Childcare usage in Northern Ireland is the availability of the Northern Ireland Childcare Subsidy Scheme (NICSS). This scheme gives eligible households who are using Tax-Free Childcare an additional 15% discount off their childcare bill. Initially this additional support was only available for children under primary school age, however, from September 2025 this was expanded to all primary school age children and this is now the second quarter that we are seeing this change having an impact on the uptake of Tax-Free Childcare.
We know that there are many families who are still missing out on all the financial support with childcare they could be entitled to
There are a range of support schemes available to help with registered childcare costs including Tax-Free Childcare, the NI Childcare Subsidy Scheme, Universal Credit and also for existing claimants, Childcare Vouchers. What is best for your family will depend on your household circumstances and income, the Family Benefits Advice Service can help you work this out.
What is Tax-Free Childcare?
The Tax-Free Childcare scheme allows eligible working families to claim 20% of their registered childcare costs, up to £2,000 per child per year, or £4,000 for a child with a disability, from HMRC. In March 2026 the total amount of support given to UK families through this scheme was £55 million.
To claim Tax-Free Childcare, both parents need to be in employment (or one person in a single parent household), earning between £203.36 (equivalent to 16 hours working at the National Living Wage) and £100,000 per year each. So, for example, a household where each parent is earning £95,000 (combined income of £190,000) would be eligible. Savings are not taken into account in determining if a parent is eligible for Tax-Free Childcare.
Tax-Free Childcare is also available to self-employed parents (where eligible). Households where one parent is working, and the other parent is in receipt of Carer’s Allowance or certain disability benefits can also qualify.
The scheme is open to parents of children until the September after their 11th birthday (or 16th birthday for children with disabilities) and cannot be used alongside any other form of childcare support with the exception of the NI Childcare Subsidy Scheme.
For more detailed information you can download our Comprehensive Guide to Tax-Free Childcare here.
Further information
We would encourage all parents to make sure they are receiving all the financial support they are entitled to with their childcare costs, and to check regularly that they are receiving the best form of support for their family.
If you would like further advice on help with childcare costs or wish to find out more about what financial support you may be entitled to, contact our Family Benefits Advice Service for free, impartial and confidential advice.
Contact us by emailing fbas@employersforchildcare.org – we are here to help.