FAMILIES struggling with the cost of living can get extra help covering childcare through five avenues.
It comes as the Government rolls out further financial support for parents, with the latest round saving them £6,500 on nursery fees.
1
The Department for Education is extending 30 hours free childcare to working parents of two-year-old children from April, with eligible families being urged to apply from now.
From September, working parents of children aged between nine months and two years will be able to claim 15 hours of free childcare.
Then from September 2025, working parents of children aged between nine months and five years will qualify for 30 hours.
But there are five other avenues parents can utilise to cover the cost of childcare NOW. Here’s all the help you can get:
15 or 30 hours free childcare
All three to four-year-old children in England are entitled to 15 hours of free childcare per week – amounting to 570 hours a year.
The allowance is usually taken as 15 hours per week for the 38 weeks of school term time a year.
Plus, you can only claim the free childcare if it’s through an approved provider and stops when your child starts school.
You can find a list of approved childcare providers on the Government’s website.
Working parents may be eligible for up to 30 hours of free childcare too.
Working parents are those classed as earning between £8,670 and £100,000 a year.
The rules apply to both parents.
So, if one parent is earning £101,000 and another £15,000 a year, you won’t qualify. If both are earning £90,000, you are eligible.
Parents of two-year-old children can also get 15 hours of free childcare too, if they are receiving Government support.
This includes those on a range of benefits such as Universal Credit, Income Support and Child Tax Credits.
Full eligibility criteria for free childcare is on the Government’s website.
Tax-free childcare
Tax-free childcare is available for parents and guardians who can get £2 free for every £8 added to a personal account.
You can receive a maximum of £2,000 in free cash a year from the Government per child, or £4,000 if your child is disabled.
The child has to be under the age of 12, or 17 if they are disabled.
Meanwhile, the money has to be used to pay for childcare, including nursery, childminders or after school clubs.
It can be used to cover the cost of care outside of term time or for out of school activities as well.
As an example, if your childcare costs are £1,000 a month, you could pay £800 into your tax-free childcare account and the Government would cover the remaining £200 – a £2,400 saving per month.
You qualify based on your personal circumstances, including your income.
You can claim tax-free childcare at the same time as 15 or 30 hours free childcare.
Universal Credit childcare costs
Working parents on Universal Credit can claim 85% of the cost of childcare.
The payments have been made upfront since June last year, in a major win for The Sun’s Make Universal Credit Work campaign.
The most you can claim is £951 per month for one child and £1,630 per month for two or more children.
But bear in mind, the amount you will get off each month varies depending on what your income is during each assessment period.
Meanwhile, you must pay for childcare through a registered or approved provider.
Child benefit
Parents with a child under 16, or one under 20 and in approved education or training, can get help via child benefit payments.
There’s no limit to the amount of children you can claim for but you receive a reduced rate after your first child.
The weekly rate for your eldest or only child is £24 while it’s £15.90 for any additional kids.
But bear in mind, if you or your partner start earning £50,000 or more you will have to start paying your child benefit back through the High Income Child Benefit Charge.
If one or both of you earns £60,000 or more, you have to pay it all back.
Local charities
Certain organisations, such as the YMCA or local church groups, sometimes run after school clubs for free.
But check whether there are any eligibility requirements by speaking to the organisation directly.
For example, you might not be eligible for help if you can’t pick your children up from school due to work commitments.
Do you have a money problem that needs sorting? Get in touch by emailing money@the-sun.co.uk.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories.
