The client and her husband live in Newry and she is due to return to her full-time job across the border in Dundalk within the next few months, following the birth of their first child.

Her husband works full-time in Newry and they have secured a place with an registered childminder in Dundalk, convenient to the client’s place of work.  She queries if they would be eligible for any assistance with the cost of childcare.

The couple have been made aware of the following options:

Universal Credit: Childcare element – this is financial help to meet up to 85% of relevant childcare costs provided the childminder is registered (north or south) with the relevant authority (Tusla, Child and Family Agency) and that the client can provide the required documentation to that effect.

Fortunately due to their earnings, the couple are not entitled to Universal Credit so are unable to avail of this help.

They may, however, be eligible to apply for Tax Free Childcare – the client can set up an online childcare account and for every £8 she pays into the account, the government adds in a further £2, which is used to pay the approved childcare provider. She can get up to £500 every 3 months (£2000 annually) to help meet her childcare costs.  Note: cross-border workers living in Northern Ireland are required to report their worldwide (Irish) earnings to HMRC each year via a Self Assessment tax return. The client should already be doing this and needs to continue doing so in order to avail of tax free childcare.

Due to the client’s cross-border worker status Irish family benefits were also discussed:

As her husband is employed in NI and the children are resident there they should claim UK Child Benefit, however due to her employment in Dundalk they can also apply for a supplementary, or top-up, payment of Irish Child Benefit.  As Irish Child Benefit is currently paid at a higher rate than in Northern Ireland the top-up is the difference between the two payments.

The couple are not currently entitled to claim Irish Working Family Payment as their average weekly income exceeds the income limit for their family size, but if their income reduces or they have more children in the future, they should consider submitting an application.

For further reading on this topic see

• Border People Briefing Paper – Cross Border Family Benefits
• Employer for Childcare – Comprehensive Guide to Tax-Free Childcare

Page last checked: May2023