Could you be entitled to support with childcare costs?

Over 9,000 families in Northern Ireland now saving money on childcare 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 37%, 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. The significant increase in numbers above is due to the acceleration of families being moved from Tax Credits onto Universal Credit over recent years culminating in the ending of all Tax Credit awards in April 2025.

The most recent figures released by the Department for Communities for Northern Ireland show that there are 94,380 households with children in Northern Ireland receiving Universal Credit. Of these households with children, there are 9,080 households in receipt of the Childcare Element of Universal Credit in May 2025, this is an increase of 28%, 2,570 households over the past 2 years.

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 2025 was £550. This is the highest monthly contribution to childcare costs through Universal Credit since the benefit was introduced in Northern Ireland. This amounts to almost £5 million per month in childcare support being paid through Universal Credit, and almost £55 million in the past year.

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.