The cost of childcare has risen drastically over recent years.
The TUC said nursery fees for under-twos have risen by £185 a month since the Conservatives took office - more than £2,000 per year. The average annual nursery bill for a family with a toddler was £4,992 in 2010, but last year it was more than £7,200, said the union organisation.
TUC chief Frances O’Grady said: “ Childcare should be affordable for all, but parents are spending a massive chunk of their pay packets on childcare bills, while their wages stagnate. This is putting huge pressure on family budgets at the same time as other living costs are shooting up. New mums are caught in a Catch 22."
READ MORE: Parents can claim £2,000 tax-free grant to help with childcare costs
They added: “The UK’s miserly rate of statutory maternity pay means many are under financial pressure to return to work early and are then at the mercy of sky-high childcare fees. We urgently need to get wages rising to stop households drowning in bills.” We take a look at what childcare help is currently out there and how to apply for it.
Tax-Free Childcare
You can get up to £500 every 3 months (up to £2,000 a year) for each of your children to help with the costs of childcare. This goes up to £1,000 every 3 months if a child is disabled (up to £4,000 a year). If you get Tax-Free Childcare, you’ll set up an online childcare account for your child. For every £8 you pay into this account, the government will pay in £2 to use to pay your provider. You can get Tax-Free Childcare at the same time as 30 hours free childcare if you’re eligible for both.
Eligibility
Your eligibility depends on:
- if you are working
- your income (and your partner’s income, if you have one)
- your child’s age and circumstances
- your immigration status
You’ll need to expect to earn a certain amount over the next 3 months. This is at least the National Minimum Wage or Living Wage for 16 hours a week on average.
Your child must be 11 or under and usually live with you. They stop being eligible on 1 September after their 11th birthday. Adopted children are eligible, but foster children are not. If your child is disabled you may get up to £4,000 a year until they’re 17.
Tax credits and childcare
If you already claim tax credits, you can add an extra amount of Working Tax Credit to help cover the cost of childcare. Both of the following must apply:
- your child is in approved childcare
- the childcare is provided in-person, not online
Universal Credit and childcare
You may be able to claim back up to 85% of your childcare costs if you’re eligible for Universal Credit. You (and your partner if you live with them) will usually need to either:
- be working - it does not matter how many hours you or your partner work
- have a job offer
The most you can get back each month is:
- £646 for one child
- £1108 for 2 or more children
Help with childcare while you study
School or sixth form
You could get weekly payments through Care to Learn if you’re under 20 at the start of a publicly-funded course, for example at school or sixth form.
Further education
You can apply for Learner Support to pay for childcare if you’re 20 or over and in further education, for example studying for an NVQ, BTEC or PGCE.
Full-time higher education
You can apply for a Childcare Grant if you’re in full-time higher education to pay for childcare costs for children:
- under 15
- under 17 if they have special needs
Free education and childcare for 2-year-olds
Your 2-year-old can get free childcare if you live in England and get one of the following benefits:
- Income Support
- income-based Jobseeker’s Allowance (JSA)
- income-related Employment and Support Allowance (ESA)
- Universal Credit, and your household income is £15,400 a year or less after tax, not including benefit payments
- child tax credits, and your household income is £16,190 a year or less before tax
- the guaranteed element of Pension Credit
- the Working Tax Credit 4-week run on (the payment you get when you stop qualifying for Working Tax Credit)
2-year-olds can also get free childcare if they:
- are looked after by a local authority
- have a statement of special education needs (SEN) or an education, health and care (EHC) plan
- get Disability Living Allowance
- have left care under an adoption order, special guardianship order or a child arrangements order
15 hours free childcare for 3 and 4-year-olds
All 3 to 4-year-olds in England can get 570 free hours per year. It’s usually taken as 15 hours a week for 38 weeks of the year, but you can choose to take fewer hours over more weeks, for example. You can get it from the term after your child’s 3rd birthday.
30 hours free childcare
You may be able to get 30 hours free childcare if:
- you live in England
- your child is 3 to 4 years old
You can get 30 hours of free childcare per week for 38 weeks of the year (during school term time). You may be able to get free childcare for 52 weeks if you use fewer than 30 hours per week. Check with your childcare provider to find out if this is something they offer. Check if you are eligible and apply online for 30 hours free childcare.
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