With the rising cost of living, many family budgets are being squeezed, leaving many people looking for ways to save money. Well, help is at hand.
More than a million families are entitled to financial support for childcare from the government, although many do not realise they are eligible.
The help comes in the form of Universal Credit, Tax-Free Childcare and 30/15 hours of childcare provision.
And the support could be worth thousands of pounds, which can be used flexibly with a range of providers. These include schools, nurseries, nannies, childminders, before and after school clubs and playgroups - places where your children can get care and interact with other children, which can help with their development.
HOW TO ACCESS HELP
To find out what cost of living support you could be eligible for, visit the Childcare Choices website. Eligibility criteria apply.
For more information about other government support offers visit Help for Households.
Those eligible for Tax-Free Childcare may be missing out on up to £2,000 every year, or £4,000 for children with disabilities, towards childcare costs. But only 3 out of 10 eligible families are currently claiming their entitlement.
TAX-FREE CHILDCARE
- Tax-Free Childcare is a government scheme designed to provide financial support for working families. For every £8 families pay into their childcare account, the government adds £2. Eligible families with children under 11 can get up to £2,000 per child, per year, towards their childcare costs (or up to £4,000 for disabled children under 17)
- Families can get up to £500 every 3 months for each of their children
- Families can use Tax-Free Childcare to pay for childcare with a childminder, nanny, playscheme, nursery or club, school or home care worker, after school and wraparound care if they are registered providers
- Families can use the scheme in the school holidays for holiday play schemes, sports and other activity camps
- If you and your partner each earns less than £100,000 a year you can still claim providing you meet the other eligibility criteria
- Check your eligibility and set up a childcare account on GOV.UK
In Portsmouth, Gemma used Tax-Free Childcare to support her son, now aged five, through nursery and after-school care and school camps.
“It’s always worth checking, you’d be surprised how many offer it…even places you didn’t think would,” she said.
UNIVERSAL CREDIT
- With Universal Credit, you can get help to cover up to 85 per cent of your childcare costs with Ofsted registered providers for children aged 0-16. This could make it easier to get into work or increase your hours
- Working parents can claim back up to a maximum monthly cap of £646.35 for one child and £1,108.04 per month for two or more children. This support is available to Universal Credit customers in England, Scotland and Wales
- To make a claim for support with childcare costs, Universal Credit claimants can log onto their Universal Credit account or speak to their Work Coach for more information. Eligiblity criteria apply
- If you are entitled to get 30/15 hours childcare support, Universal Credit will pay for any additional hours of childcare used
For Jordan, a young single mother with a three year-old daughter, her Universal Credit payment covers a significant portion of her childcare costs.
Jordan’s Jobcentre Plus Work Coach helped her find a job at Rangers Charity Foundation in Glasgow as a community assistant.
“I had always wanted to work, but the high cost of childcare made it feel impossible. Being able to claim back these costs has made a big difference to my life and my daughter’s too,” she said.
30/15 HOURS CHILDCARE
- Working families in England with 3 and 4 year old children can access 30 hours of childcare of early education for 38 weeks per year
- To receive your 30 hours code, you need to set up a childcare account and apply by 31st August. You can use the same account to apply for Tax-Free Childcare
- Your child can start in their childcare place the term after they turn 3 years old and have received a valid 30 hours code, whichever is later. Term start dates are 1st September, 1st January and 1st April
- To keep your 30 hours childcare place you need to check your details are up to date every 3 months
For Leigh, a mother-of-one from Wales, the long school holidays were less of a worry this year thanks to the 30 hours of childcare support she can access.
With a childminder lined up Leigh can carry on working her usual hours secure in the knowledge that her daughter is being well looked after.
This is because, throughout the school year Leigh was able to get access to 30 hours of childcare support per week. With the money she was able to save she has been able to sort her daughter’s summer childcare provision and continue in her work as a technical adviser for a communications firm throughout the summer.
