Growing number of families now using Tax-Free Childcare to help with their childcare costs.

Over 15,400 families in Northern Ireland now saving money on childcare through Tax-Free Childcare

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, over the last year there has been a significant increase – of around 20% – in the number of families claiming support through the scheme. This is once again the highest annual increase in Tax-Free Childcare users across the UK, and significantly higher than the average rise across the other UK regions of 16%.

Figures recently released by HMRC show that 15,420 families in Northern Ireland were using their Tax-Free Childcare accounts in June 2025, this is an increase of 2,540 over the year. These accounts have been used to pay for childcare for total of 20,290 children, which is an increase of 21.4% since June 2024.

Northern Ireland Childcare Subsidy Scheme

A possible 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 is expanding to all primary school age children, and it will be interesting to see the effect this will have on the uptake of Tax-Free Childcare in future statistics.

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.

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 June 2025 the total amount of support given to UK families through this scheme was £57.7 million.

To claim Tax-Free Childcare, both parents need to be in employment (or one person in a single parent household), earning between £195.36 per week (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 under the age of 12 (or age 17 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.