Advice for Parents/Guardians

+ Q. What is the NICSS?

The NICSS is a subsidy scheme introduced by the Department of Education (DE) on behalf of the Northern Ireland Executive to help working parents with the cost of childcare.

+ Q. Which parents are eligible for the subsidy scheme?

Working parents eligible for Tax-Free Childcare (TFC) with children who have not yet started primary school are eligible for the subsidy. If you are unsure about your eligibility for TFC, please contact HMRC Childcare Service helpline on 0300 123 4097 or at Childcare Service helpline - GOV.UK (www.gov.uk).

+ Q. Can I claim both the NICSS subsidy and TFC?

Yes, providers will reduce the normal fee they charge to eligible parents by 15%. Parents can then obtain a further 20% contribution towards their reduced bill from TFC. (for example, for every £8 you pay into your TFC account, the government will pay in £2 to use to pay your provider.) This results in a 32% reduction overall*. (*Unless you exceed the respective caps)

+ Q. Will the subsidy be offered by all types of childcare providers, including childminders?

The subsidy can be offered by eligible registered childcare providers who are signed up to the TFC scheme and can register a child below primary school age. This includes nurseries, playgroups, and childminders. It also covers Approved Home Childcare (AHC) providers who are approved by DoH. You must also have a TFC account for your child. It does not apply to unregistered or informal childcare arrangements.

+ Q. Does an eligible childcare provider have to offer you the subsidy?

It is a decision for eligible childcare providers to decide whether or not they wish to offer the subsidy to their parents. The subsidy scheme is not mandatory for providers, therefore not all providers may decide to offer the subsidy.

+ Q. 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 if they will offer the subsidy. Providers need to be registered for TFC to offer the subsidy.

+ Q. When can the subsidy be claimed?

If your childcare provider is registered to provide the subsidy and you are an eligible parent, any childcare used from 1 September onwards should be eligible for the subsidy irrespective of whether it is billed in arrears or in advance.

+ Q. Why is the subsidy scheme linked to TFC eligibility?

The Executive has agreed that the subsidy scheme should focus on working parents eligible for TFC with children who have not started primary school. Linking the scheme to TFC ensures the subsidy is targeted at working parents more likely to be incurring higher childcare costs, streamlines the eligibility checking process, and minimises displacement of other existing financial support for parents. The subsidy scheme adopts a similar approach to TFC in that the amount that can be claimed is a percentage of total childcare costs.

+ Q. Will parents using Childcare Vouchers be eligible for the subsidy scheme?

No. The NICSS will only be available for parents who can demonstrate their eligibility for TFC through a TFC account. TFC is the current Government supported scheme and is open to all who meet the eligibility criteria. The Childcare Voucher scheme was the predecessor to TFC and closed to new entrants in 2018. Parents still using Childcare Vouchers who are eligible for TFC can transfer to TFC at any point in order to benefit from the NICSS.

+ Q. Why can’t parents who use Childcare Vouchers access the subsidy scheme?

The Childcare Voucher and TFC schemes have different rules, different eligibility criteria and provide different levels of support. The Executive has agreed that those eligible for TFC should be the focus of the NICSS. Eligibility for Childcare Vouchers is also wider than for TFC (e.g. both parents do not have to be working). Providing the 15% subsidy to all those using vouchers would be unfair to families not eligible for TFC (e.g. where only one parent is working) but who would have qualified for the voucher scheme if it had still been open to them.

+ Q. Can those claiming Childcare Vouchers move to TFC?

Not all parents claiming vouchers will be eligible for TFC. For advice on TFC contact the Childcare Service helpline on 0300 123 4097 or Employers for Childcare (EFC) Family Benefits Advice Service 028 92678200 / https://www.employersforchildcare.org/parents/family-benefits-advice-service/

+ Q. Why can’t those on vouchers who meet the TFC eligibility criteria not remain on the voucher scheme and receive the subsidy under the NICSS?

Offering the subsidy to parents eligible for TFC but who prefer to stay on the voucher scheme due to its financial advantages would be unfair and add additional administrative complexity and costs. Parents currently using vouchers who are eligible to TFC can switch to TFC at any time and benefit from the subsidy. Parents should seek independent advice prior to switching to TFC to ensure that this is the best choice for them.

+ Q. If I am currently a voucher user and meet the TFC eligibility criteria,should I move to TFC?

The decision depends on your specific circumstances. For advice on TFC contact the Childcare Service helpline on 0300 123 4097 or Employers for Childcare (EFC) Family Benefits Advice Service 028 92678200.

+ Q. How is the subsidy expected to work in practice?

Operational details are currently being developed and will be provided in the coming weeks. It is anticipated that providers will reduce the normal fee charged to eligible parents by 15%. Your bill/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 from TFC and pay their provider in the usual way using their TFC account.

+ Q. 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 which will be paid by the Executive. Your bill/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 from TFC and pay their provider in the usual way using their TFC account. (for example, for every £8 you pay into your TFC account, the government will pay in £2 to use to pay your provider.)

+ Q. 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, subject to the monthly upper limit (per child) not being exceeded. Both childcare providers would also need to offer TFC

+ Q. Does receiving the subsidy affect my eligibility for TFC or the maximum claim limits/caps under TFC?

No. The subsidy scheme is separate and does not affect your TFC eligibility or the TFC caps.

+ Q. Will my provider be reimbursed for the subsidy?

The subsidy provided to parents can be claimed back by providers directly from the scheme administrator. This ensures that the provider can offer the subsidy without any financial loss. Detailed information on this process is being developed in consultation with providers and is available at www.early-years.org/nicss

+ Q. Can parents on Universal Credit access the subsidy?

No. Parents who receive financial support for childcare under Universal Credit are not eligible for the subsidy scheme. If you are unsure about your eligibility for Universal Credit, please contact the Make the Call service on free phone 0800 232 1271 or e-mail makethecall@dfcni.gov.uk.

+ Q. Can I receive the subsidy if I work part-time?

Yes, as long as your child has not started primary school and you meet the TFC eligibility criteria. Your provider must also be registered and signed up to the TFC scheme.

+ Q. If my child is in the pre-school education programme (PSEP) can I get the 15% subsidy on any additional costs made by the PSEP provider?

No. Your child’s PSEP 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 PSEP, they may do so, provided that it is made explicit that all contributions are entirely voluntary. The subsidy scheme is about childcare costs therefore voluntary contributions for PSEP cannot be claimed through the subsidy scheme.

+ Q. If my child is in the PSEP, can I access the subsidy for any additional childcare costs I have outside of PSEP?

Yes, you can claim childcare costs for wrap-around services outside of PSEP, as long as you meet the eligibility criteria. Your provider must also be registered and signed up to the TFC scheme.

+ Q. Will the subsidy scheme provide financial support for childcare costs for children with special needs/disability?

Yes, the subsidy scheme aims to support all eligible working parents, including those with children who have special educational needs/disabilities (SEN/D), as long as they meet the criteria for TFC. Your provider must also be registered and signed up to the TFC scheme.

+ Q. How does the NICSS interact with the HMRC TFC system?

They are separate systems. However, eligibility to TFC will be used to determine eligibility to the NICSS. For advice on TFC contact the Childcare Service helpline on 0300 123 4097.

+ Q. Who will administer the subsidy scheme?

Early Years – the organisation for young children has been appointed as the scheme administrator to work with providers and parents.

+ Q. Where will I get further information about the scheme?

These FAQs will be regularly updated with information as it becomes available. It is expected that a dedicated helpline will be established to provide advice on NICSS related queries. Further information is available at www.early-years.org/nicss

+ Q. How long can I receive the subsidy for?

You can receive the subsidy as long as you are eligible and using TFC and your child has not started primary school. Eligibility to TFC needs to be reconfirmed with HMRC every three months. The scheme currently has approval from the Executive to run from September 2024 to March 2025.

+ Q. Will providers be required to increase fees to participate in the NICSS?

There is no need for providers to adjust parental fees to align with the NICSS requirements or to cover the administration costs of implementation.
Providers are expected to retain their normal fees structures for children of the same age who are accessing similar services. There should be no differentiation in pricing between children receiving the subsidy and those who are not. Participation in the subsidy scheme will be based on this approach.

+ Q. My child is not starting childcare until after 1st September, for example 1st December, what do I do?

The system will remain open for any new eligible children that will be joining during the funding period.

+ Q. My provider has told me they have registered, but I cannot find them on the portal.

Please check with your provider that they have fully completed and submitted their registration on NICSS portal. If they haven’t done so, please request that they do and try again in 24 hours to find them on the portal. If they have fully completed and submitted, please get in touch using the following link www.early-years.org/nicss

+ Q. What do I need to do now to access the subsidy?

If your provider is eligible and willing to offer the subsidy scheme, they will contact you.

+ Q. If my provider contacts me to advise that they are offering the subsidy what do I need to do next?

Your provider should let you know by email/letter that they will be offering the subsidy and that you are an eligible parent. The letter should also detail the steps you need to follow to register for the scheme.

+ Q. What happens if my provider does not contact me?

You should contact your provider and ask them if they are offering the scheme. For you to be eligible for the scheme, you must be registered and receive TFC and your child should not yet have started primary school. Your provider must also be registered and signed up to the TFC scheme to be able to offer the subsidy. The subsidy scheme is not mandatory for providers, therefore not all providers may decide to offer the subsidy. Further information is also available - www.early-years.org/nicss

+ Q. Can you provide an example of how the subsidy might work?

The following table sets out an example of how the subsidy and TFC might impact a monthly childcare bill of a parent eligible for the subsidy:

1. Monthly fee normally charged by provider to a parent - £1,000
2. NICSS subsidy (15% of normal fee) paid by EYO on behalf of the Department of Education - £150
3. Reduced monthly fee charged by the provider to an eligible parent under the subsidy scheme - £850
4. Tax free childcare discount claimed by a parent through their TFC account (20%(for every £8 you pay into your TFC account, the government will pay in £2 to use to pay your provider)- £170
5. Net cost of fees to parent - £680

+ Q. Is there a maximum amount that can be claimed under the subsidy scheme?

Yes. The maximum amount that can be claimed per child under the subsidy scheme has initially been set at £167 per month, which is £2,000 per year. This is based on a maximum childcare cost of £1,113 per month, or £13,360 annually. If your childcare costs are less than this, you will be able to claim the full subsidy. If they are more than this, you can claim the subsidy on £1,113 of your costs each month.

+ Q. Why is there a need for the cap and how was it determined?

A cap is necessary to strike a balance between helping parents with the cost of childcare and managing the available budget in an equitable and responsible way. The initial level at which it has been set was informed by the data available on full-time childcare costs, the current distribution of annual TFC claims and available budget. Data from the operation of the scheme will provide more comprehensive information on costs and the cap will be reviewed in light of this emerging evidence. The intention is to set it at a level which ensures the vast majority of families fully benefit from the 15% subsidy.

+ Q. Why is the cap monthly and not every three months similar to TFC?

The cap is set monthly to make it straightforward for parents and providers to understand and easier for providers to administer. We will however keep the monthly cap level under review to ensure it meets the needs of the scheme.

+ Q. Does the cap apply to the childcare costs of children with a disability?

If your child can claim up to £4,000 under TFC, they will be able to claim up to £4,000 under the NICSS. What this means is that the monthly cap under the NICSS will be £334 a month for this child rather than £167. You will be required by EYO to demonstrate that you meet the HMRC TFC criteria for a child who is disabled. Further information on the TFC rules can be found at Tax-Free Childcare - GOV.UK (www.gov.uk)