The Northern Ireland Executive plans to subsidise more than half of all childcare costs for working families by April 2032 under a long-term strategy that could cost Stormont around £500m to deliver.
The proposals are set out in a draft early learning and childcare strategy published by the Executive, with Education Minister Paul Givan describing the plans as ambitious but realistic amid ongoing budget pressures.
Childcare costs remain high
According to the draft strategy, the average cost of full-time childcare in Northern Ireland currently stands at £57 per day per child, equivalent to just under £15,000 per year before any deductions or subsidies.
The Executive said high childcare costs continue to act as a barrier to employment, particularly for parents returning to work or increasing their hours.
Long-term subsidy target set
Under the proposals, the Executive aims to subsidise 50% of childcare costs for working families by April 2032.
The strategy also commits, in the longer term, to providing a full year of full-time pre-school education for every child, expanding access beyond the current early years entitlement.
Support for children with special needs
The draft plan includes measures to improve provision for children with Special Educational Needs.
In the longer term, children with SEN would be offered childcare and after-school provision in special schools.
In the short term, special schools would receive additional funding to purchase new equipment to support younger pupils.
Workforce shortages highlighted
The strategy identifies staffing as one of the biggest challenges facing the childcare sector.
It notes that childcare workers are often undervalued, under-paid and under-supported despite the complexity and importance of their role.
The Executive said the sector is struggling with recruitment, retention, recognition and career progression, contributing to capacity constraints across Northern Ireland.
Real living wage commitment
A key aim of the strategy is to ensure all childcare staff are paid at least the real living wage, a voluntary benchmark set by the Living Wage Foundation.
This comes as the UK-wide National Living Wage is set to rise to £12.71 an hour for workers aged 21 and over from April 2026, increasing cost pressures for providers.
Decline in childminders continues
The number of registered childminders and home-based childcare places in Northern Ireland has more than halved over the past decade.
The strategy says childminder numbers are falling year-on-year, while the overall number of childcare places has remained largely static, limiting parents’ options.
Existing subsidy scheme expanded
The Executive has already spent around £25m on a childcare subsidy scheme designed to help families with costs.
That scheme has since been extended to include primary school-aged children.
According to Givan, around 23,000 children have been registered so far, saving families almost £18m in total.
However, the subsidy is currently capped at £184 per month, although families can combine it with the UK-wide tax-free childcare scheme.
Funding constraints acknowledged
Affordable and accessible childcare was a key commitment in the Executive’s programme for government.
In the foreword to the strategy, Givan said progress would depend on future funding settlements and competing public spending priorities.
He said the pace and scale of delivery would be shaped by the resources available to the Executive in the coming years.
Public consultation launched
The draft childcare strategy includes a range of short-term and long-term actions aimed at reforming early learning and childcare provision.
A public consultation on the proposals has now opened and will run for 14 weeks, closing on 24 March 2026.
The Executive said feedback will help shape the final strategy and determine how quickly reforms can be implemented across Northern Ireland.
