Over 8,650 families in Northern Ireland now receiving support for childcare costs through Universal Credit

There are a number of forms of support available towards registered childcare costs, one of which is Universal Credit. Universal Credit was first introduced to Northern Ireland in 2017 however it is in the last 2 years that there has been a significant increase, of around 23%, in the number of families with children claiming support through this benefit.

Prior to the introduction of Universal Credit, the main form of support for childcare costs was through Tax Credits. While these 2 forms of support ran alongside each other for a number of years, from the end of 2023 there was a significant increase in the number of families being moved off Tax Credits and onto Universal Credit culminating in the closure of all outstanding Tax Credit awards in April 2025.

The most recent figures released by the Department for Communities for Northern Ireland were released at the end of August 2026, covering the period up to the end of May 2026, show that there were 102,910 households with children in Northern Ireland receiving Universal Credit. Of these households with children, there were 8,650 households in receipt of the Childcare Element of Universal Credit in May 2026, this is only a small increase of 0.6%, 50 households, over the past 2 years. This figure is actually a 5% decrease since this time last year.

Universal Credit Childcare Element

If you pay for childcare while you go to work, Universal Credit can pay some of your registered childcare costs. You can get up to 85% of childcare costs paid back to you.

The recent figures show that the average monthly amount of support for childcare costs paid by Universal Credit through the Childcare element in May 2026 was £571. This amounts to over £4.9 million being paid in childcare support through Universal Credit in that month, and over £57 million in the past year.

Scrapping of the 2-child cap

In the November 2025 Budget the Chancellor announced that from April 2026 the end of the current policy that means households only receive a payment of the child element for their first 2 children (with limited exceptions).

The recent figures show that in March 2026, out of 91,970 households in receipt of the child element of Universal, 13,700 households, almost 15%, were affected by this policy resulting in 17,470 children not being supported through Universal Credit. By May 2026, after the scrapping of this policy only 520 children remain affected across 430 households, these should be no longer affected by the next release of figures.

The next release of Universal Credit Statistics is due in November 2026 for the period up to the end of August 2026.

Further information

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 for also for existing claimants Childcare Vouchers. What is best for your family will depend on your circumstances and the Family Benefits Advice Service can help you work this out.

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.