Advice for Parents/Carers
FAQs
These FAQs aim to provide answers to common questions about the Northern Ireland Childcare Subsidy Scheme. These FAQs will be updated on an ongoing basis, so please check frequently for the latest information.
What is the NICSS?
The NICSS is a subsidy scheme introduced by the Department of Education on behalf of the Northern Ireland Executive to support working parents with the cost of childcare.
Which parents are eligible for the subsidy scheme?
Working parents who are eligible for Tax-Free Childcare and have children aged between 0 and 11 years old may be eligible for the subsidy scheme.
If you are unsure about your eligibility for Tax-Free Childcare, please contact the HMRC Childcare Service Helpline on tel:03001234097 0300 123 4097 or visit the Childcare Service Helpline page on GOV.UK .
I do not use the online Tax-Free Childcare system and do not have a Tax-Free Childcare payment reference. How can I register on the NICSS portal?
We understand that some parents and carers do not use the online Tax-Free Childcare system and therefore will not have been allocated a Tax-Free Childcare payment reference.
If this applies to you, please contact the NICSS Team at nicssparent@early-years.org . We will allocate you a unique reference number that you can use to register your child.
Can I claim both the NICSS subsidy and Tax-Free Childcare?
Yes. Providers will reduce the normal fee they charge eligible parents by 15%. Parents can then obtain a further 20% contribution towards their reduced bill through Tax-Free Childcare.
For example, for every £8 you pay into your Tax-Free Childcare account, the government will pay in £2 for you to use to pay your childcare provider.
This results in an overall reduction of 32%, unless you exceed the respective scheme caps.
Please note: The overall reduction may vary if the applicable NICSS or Tax-Free Childcare caps are exceeded.
Will the subsidy be offered by all types of childcare providers, including childminders?
The subsidy can be offered by eligible registered childcare providers and schools that are signed up to the Tax-Free Childcare scheme with HMRC.
This includes daycares, playgroups, childminders, approved home childcare, crèches, out-of-schools settings, primary schools and special schools.
The subsidy does not apply to unregistered or informal childcare arrangements.
Does an eligible childcare provider have to offer the subsidy?
It is for eligible childcare providers and schools to decide whether or not they wish to offer the subsidy to parents and carers.
The subsidy scheme is not mandatory for providers, and some providers may choose not to offer it.
How will I know if my provider is offering the subsidy?
This is a decision for your childcare provider, and they are best placed to advise you whether they are offering the subsidy.
Providers must be registered for Tax-Free Childcare to offer NICSS. Your provider should contact you if they are willing and able to offer the subsidy and your child may be eligible to receive it.
If you think you may be eligible and your provider has not contacted you, please discuss this with them directly.
How the subsidy will work
Why is the subsidy scheme linked to Tax-Free Childcare eligibility?
The Executive has agreed that the subsidy scheme should focus on working parents who are eligible for Tax-Free Childcare.
Linking the scheme to Tax-Free Childcare ensures that the subsidy is targeted at working parents who are more likely to be incurring higher childcare costs. It also streamlines the eligibility-checking process and minimises displacement of other existing financial support for parents.
The subsidy scheme adopts a similar approach to Tax-Free Childcare in that the amount that can be claimed is a percentage of the total childcare costs.
How is the subsidy expected to work in practice?
Providers who decide to offer the subsidy will reduce the normal fee charged to eligible parents by 15%. This is the subsidy that will be paid by the Northern Ireland Executive.
Your bill or invoice should show the normal fee, the 15% subsidy and the net amount you will be expected to pay.
Parents can then obtain a further 20% contribution towards their reduced bill through Tax-Free Childcare and pay their provider in the usual way using their Tax-Free Childcare account.
For example, for every £8 you pay into your Tax-Free Childcare account, the government will pay in £2 for you to use to pay your childcare provider.
If I use two childcare providers for the same child, can I receive the subsidy on both bills?
Yes. The subsidy can be claimed on your total childcare costs for all eligible children, provided that the monthly discount cap for each child is not exceeded.
Both childcare providers must also be registered for Tax-Free Childcare and offer NICSS.
Does receiving the subsidy affect my eligibility for Tax-Free Childcare or the maximum claim limits under Tax-Free Childcare?
No. The subsidy scheme is separate and does not affect your eligibility for Tax-Free Childcare or the Tax-Free Childcare claim limits.
Will my childcare provider be reimbursed for the subsidy?
Yes. The subsidy provided to parents can be claimed back by childcare providers directly from the scheme administrator.
This ensures that the provider can offer the subsidy without experiencing a financial loss.
Can parents receiving Universal Credit access the subsidy?
No. Parents who receive financial support for childcare through Universal Credit are not eligible for the subsidy scheme.
If you are unsure about your eligibility for Universal Credit, contact the Make the Call service using the details below.
Telephone: tel:08002321271 0800 232 1271
Email: makethecall@dfcni.gov.uk
Can I receive the subsidy if I work part-time?
Yes, provided that you meet the Tax-Free Childcare eligibility criteria.
Your childcare provider must also be registered and signed up to the Tax-Free Childcare scheme and must offer NICSS.
If my child is in the Pre-School Education Programme, can I receive the 15% subsidy on additional costs charged by the provider?
No. Your child’s Pre-School Education Programme place is funded by the Education Authority and providers may not charge for it.
If a provider wishes to request voluntary contributions from parents for the Pre-School Education Programme, they may do so, provided it is made clear that all contributions are entirely voluntary.
NICSS applies to childcare costs. Voluntary contributions for the Pre-School Education Programme cannot therefore be claimed through the subsidy scheme.
If my child is in the Pre-School Education Programme, can I access the subsidy for additional childcare costs outside the programme?
Yes. You can claim eligible childcare costs for wrap-around services outside the Pre-School Education Programme, provided that you meet the eligibility criteria.
Your childcare provider must also be registered and signed up to the Tax-Free Childcare scheme and must offer NICSS.
Will the subsidy scheme provide support with childcare costs for children with special educational needs or disabilities?
Yes. The subsidy scheme aims to support all eligible working parents, including parents of children with special educational needs or disabilities, provided that they meet the Tax-Free Childcare eligibility criteria.
Your childcare provider must also be registered and signed up to the Tax-Free Childcare scheme and must offer NICSS.
How does NICSS interact with the HMRC Tax-Free Childcare system?
NICSS and Tax-Free Childcare are separate systems. However, eligibility for Tax-Free Childcare is used to determine eligibility for NICSS.
For advice about Tax-Free Childcare, contact the Childcare Service Helpline on tel:03001234097 0300 123 4097 .
Can you provide an example of how the subsidy might work?
The following is an example of how NICSS and Tax-Free Childcare might affect a monthly childcare bill for an eligible parent.
For every £8 an eligible parent pays into their Tax-Free Childcare account, the government pays in £2 to use towards payment of their childcare provider.
Is there a maximum amount that can be claimed under the subsidy scheme?
Yes. The maximum amount that can be claimed under the subsidy scheme is £203 per child, per month. This is equivalent to £2,436 per child, per year.
This is based on a maximum childcare cost of £1,353 per month or £16,236 annually.
If your childcare costs are below the relevant maximum, the full 15% subsidy can be applied to those eligible childcare costs.
Why is there a cap and how was it determined?
A cap is necessary to balance support for parents with the cost of childcare while managing the available budget in an equitable and responsible way.
The initial level of the cap was informed by available data on full-time childcare costs, the distribution of annual Tax-Free Childcare claims and the available budget.
Data gathered through the operation of the scheme will provide more comprehensive information about childcare costs. The cap will be reviewed in light of this emerging evidence.
The intention is to set the cap at a level that ensures the vast majority of eligible families can fully benefit from the 15% subsidy.
Why is the cap monthly rather than every three months, like Tax-Free Childcare?
The cap is set monthly to make it straightforward for parents and childcare providers to understand and easier for providers to administer.
Does the cap apply to the childcare costs of children with a disability?
If your child can claim up to £4,000 through Tax-Free Childcare, they may be able to claim up to £4,872 through NICSS.
This means that the monthly NICSS cap will be £406 for the child, rather than £203.
Early Years will require evidence demonstrating that the child meets the relevant HMRC Tax-Free Childcare criteria for a child with a disability.
Further information about the Tax-Free Childcare rules is available on the Tax-Free Childcare page on GOV.UK .
Childcare Vouchers
Will parents using Childcare Vouchers be eligible for the subsidy scheme?
No. NICSS will only be available to parents who can demonstrate their eligibility for Tax-Free Childcare through a Tax-Free Childcare account.
Tax-Free Childcare is the current government-supported scheme and is open to everyone who meets the eligibility criteria. The Childcare Voucher scheme was the predecessor to Tax-Free Childcare and closed to new entrants in 2018.
Parents who are still using Childcare Vouchers and are eligible for Tax-Free Childcare can transfer to Tax-Free Childcare at any point to benefit from NICSS.
Why can’t parents who use Childcare Vouchers access the subsidy scheme?
The Childcare Voucher and Tax-Free Childcare schemes have different rules, eligibility criteria and levels of support. The Executive has agreed that those eligible for Tax-Free Childcare should be the focus of NICSS.
Eligibility for Childcare Vouchers is also wider than eligibility for Tax-Free Childcare. For example, both parents do not have to be working to use Childcare Vouchers.
Providing the 15% subsidy to everyone using Childcare Vouchers would be unfair to families who are not eligible for Tax-Free Childcare, such as families where only one parent is working, but who may have qualified for the voucher scheme if it had still been open to new applicants.
Can those claiming Childcare Vouchers move to Tax-Free Childcare?
Not all parents claiming Childcare Vouchers will be eligible for Tax-Free Childcare.
For advice on Tax-Free Childcare, contact the Childcare Service Helpline on tel:03001234097 0300 123 4097 .
You can also contact the Employers for Childcare Family Benefits Advice Service on tel:+442892678200 028 9267 8200 , or visit the Family Benefits Advice Service website .
Why can’t parents who use Childcare Vouchers and meet the Tax-Free Childcare eligibility criteria remain on the voucher scheme and receive the NICSS subsidy?
Offering the subsidy to parents who are eligible for Tax-Free Childcare but prefer to stay on the Childcare Voucher scheme because of its financial advantages would be unfair and would add further administrative complexity and costs.
Parents currently using Childcare Vouchers who are eligible for Tax-Free Childcare can switch to Tax-Free Childcare at any time and benefit from the subsidy.
Parents should seek independent advice before switching to Tax-Free Childcare to make sure it is the best choice for their circumstances.
If I currently use Childcare Vouchers and meet the Tax-Free Childcare eligibility criteria, should I move to Tax-Free Childcare?
The decision depends on your individual circumstances. You should seek advice before moving from Childcare Vouchers to Tax-Free Childcare.
For advice, contact the Childcare Service Helpline on tel:03001234097 0300 123 4097 .
You can also contact the Employers for Childcare Family Benefits Advice Service on tel:+442892678200 028 9267 8200 , or visit the Family Benefits Advice Service website .