Daycare price hikes outstripping benefits of Stormont childcare subsidy scheme

Any benefits from Stormont’s childcare subsidy scheme have been outstripped by recent increases in daycare costs imposed on parents, according to campaigners.

A matter of months after Education Minister Paul Givan introduced a 15% subsidy on childcare costs for working parents of pre-school children, many daycare providers have hiked their prices.

One parent told The Irish News that her childcare costs had risen by almost £10-a-day to more than £67 in the past 12 months – the equivalent of more than 17% – while another couple said their weekly costs for one child had increased by 30%.

Many daycare providers have blamed employer’s national insurance and living wage increases, along with other rising overheads, while a number have cited the extra cost of administering the subsidy scheme introduced by Mr Givan last September, and recently extended.

Meanwhile, a majority childminders, most of whom are sole traders based in their own home, have not increased their costs.

Patricia Lewsley-Mooney, chief executive of the Northern Ireland Childminding Association, said the organisation’s membership decided n February not to raise their prices.

“A majority of our members agreed not to put prices up this year because they appreciate the pressure parents are facing,” she said.

The Irish News contacted the Northern Ireland Day Care Owners, a body representing nursery owners, but it did not respond.

Raissa Balduino of campaign group Melted Parents NI, which has collected data from more than 800 parents, said the increases imposed by some day care providers “appear disproportionate”.

“We understand that overheads have risen but the problem is that the increases by a minority of nurseries seem much greater than the additional costs,” she said.

“While we welcomed the introduction of the childcare subsidy scheme as a positive first step, for many parents the benefits have been negated by price increases that appear disproportionate.”

Dr Ciara Fitzpatrick, a lecturer at Ulster University’s School of Law and the Social Justice Institute, said recent day care price hikes had meant any benefits of the childcare subsidy scheme were “null and void”.

“What we’ve seen in recent weeks is price increases by big daycare providers that have ensured those limited number of parents who can avail of the subsidy scheme don’t feel any benefit,” she said.

“The providers say that it’s due to rising costs but the level of the increases, in some cases between 30-40%, seem excessive.”

According to the Department of Education, the subsidy scheme has so far saved parents around £8m and that those also eligible for the UK-wide tax free childcare scheme can reduce their childcare bills by up to 32%.

The department said there was “no evidence” to suggest that Mr Givan’s introduction of the subsidy scheme had led to an increase in childcare fees.

“Increases observed in April 2025 are largely attributable to uplifts in the national minimum wage and employer’s national insurance contributions introduced by the Labour government, which are impacting a wide range of sectors,” a spokesperson said.

“We continue to closely monitor both the level of fees and the scheme uptake. The data collected to date indicates that families accessing the scheme are receiving meaningful support.”

The spokesperson said Mr Givan was “considering what more he can do in 2025/26 with the amount allocated to early learning and childcare”.

“The minister has repeatedly said that the measures introduced to date are just a start and he has committed to producing a full strategy by autumn this year which will cover the needs of children, parents and providers.”