This page will outline the additional avenue of support when it comes to your childcare costs. If you are not eligible for some of the Early Years funding streams, you may be able to access support through the following avenues. Some of the following can be used in conjunction with the funding streams.
Tax-free childcare
If you are a working parent with children under 12 (or under 17 for disabled children), you can open an online account to pay for registered childcare. The government will pay £2 for every £8 you pay your childcare provider via an online account. You can get up to £500 every 3 months, £2,000 a year, for each of your children to help with the costs of childcare.
Criteria includes:
- Both parents/one if it is a one parent household, must be working at least 16 hours per week and earning at least National Minimum wage or equivalent.
- Both/single parent must earn less than £100k per year each.
Universal Credit
Universal Credit can pay up to 85 per cent of your childcare costs. It is available to families where single parents, or two parent families are both in paid work or have an offer of paid work. The monthly maximum amount paid back to you is £951 for 1 child or £1630 for 2 or more children.
Important to know
You must pay for your childcare costs yourself. Then you report them to Universal Credit, and Universal Credit pays some of the money back (up to 85 per cent).
You cannot claim Universal Credit at the same time as tax credits and tax-free childcare.
Tax credits
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
Update your tax credit claim to get help with childcare
Contact HM Revenue and Customs (HMRC) to update your tax credit claim - you do not need a claim form.
You must tell HMRC about changes to your circumstances, for example your childcare costs stop or change by an average of £10 or more a week.
You must renew your claim every year. You will get a reminder.
How to claim tax credits
Tax credits have been replaced by Universal Credit.
You can only make a claim for Child Tax Credit or Working Tax Credit if you already get tax credits.
If you cannot apply for tax credits, you can apply for Universal Credit instead.
You might be able to apply for Pension Credit if you and your partner are State Pension age or over.
Childcare vouchers
Childcare vouchers are now closed to new applicants. If you joined the scheme on or before 4 October 2018 you might be able to keep getting vouchers.
You can keep getting vouchers as long as:
- your wages were adjusted on or before 4 October 2018
- you stay with the same employer, and they continue to run the scheme.
- you do not take an unpaid career break of longer than a year.
You can take up to £55 a week of your wages, which you do not pay tax or National Insurance on.
How much you can take depends on the amount you earn and when you joined the scheme.
Tax-related benefits
You cannot use tax- free childcare and claim working tax credits or universal credit at the same time as they are both tax-related benefits. Use the Childcare Calculator to see which government offer would benefit you most.
Help while you study
There are several ways in which you could receive support whilst studying:
You must be the main carer for your child. Your course must be publicly funded, and you must choose your learning provider and childcare provider before you apply. You also need to make a new application for each year you claim.
You must study at a learning provider funded by the Education and Skills Funding Agency (check with your college). You must be 20 or over to get help with childcare costs. If you are 19, apply for Care to Learn instead.
If your child is cared for at home, the carer cannot be a relative and must be on the Ofsted Early Years Register or General Childcare Register - check with your provider.