Help with childcare costs
Whether you have a small child or a towering teen, the cost of childcare can be huge. Yet 100,000s of working parents are missing out on £1,000s of help with these costs. There are a range of schemes that can help, but some let you save more than others. Here we run you through all your childcare options and where to start.
You can get financial support for children of ALL AGES – not just young ones
The term 'childcare' may conjure up an image of a young child at nursery. But as many of you will know, the need to pay for childcare doesn't necessarily stop when your children go to school.
The good news is that there are schemes that cover children at different ages, depending on your family's circumstances:
If you've a three or four-year-old (or from nine months in England) 'free' childcare could be available. Parents across the UK can get up to 30 funded hours a week. But beware, the actual government funding entitlement is for 1,140 hours a year. This means that for a full 30 hour week, funding will only cover 38 weeks. To work around this, many providers stretch their funded hours by offering fewer a week over the year, with parents paying the shortfall.
If you're on Universal Credit and in work, you can reclaim some of your childcare costs – up to a maximum of £1,071 for one child and £1,836 for two or more children – for children up to the age of 16. You can claim just during school holidays, or throughout the year.
If you're not on benefits but entitled to Tax-Free Childcare, you can get a top-up of up to £2,000 per year, per child until the 1 September after your child turns 11 (or 16 for disabled children – and for them you can claim up to £4,000).
If you're still able to use Childcare Vouchers, you can use them until your children turns 15 (or 16 if they're disabled).
In all cases, you need to use a registered provider (see the box below for how to check, depending on the country you're in).
Check your childcare provider is registered
No matter which of the above schemes you use, if you're getting help from the government, you'll need to choose a provider that's been checked, approved and registered by the relevant regulator. It's quick and easy to find a registered provider near you and/or check that a provider you've chosen is registered:
England: childcare providers and childminders must be registered with Ofsted. Search the Ofsted Childcare Provider Database using the provider's name or its Unique Reference Number (URN).
Wales: childcare providers and childminders must be registered with check the Care Inspectorate Wales (CIW). You can search the database using the service name, care type and location.
Scotland: childcare providers and childminders must be registered with the Scottish Care Protectorate. You can search the database using the service name, number and location.
Northern Ireland: childcare providers and childminders must be on the local early years team register, and you can search using a keyword (such as the providers name or location. Or you can get in touch with your local early years team.
Quick questions
Can I get help for extra costs during school holidays?
School holidays can be hard for working parents. But, in addition to the schemes mentioned above (all of which can be used during school holidays), there is additional support available for some.
If you're on certain benefits, you could qualify for additional childcare help over the school holidays. We cover what's available across the UK in our Free school meals and holiday help guide.
If you don't qualify for benefits, there are still ways to get free or cheap childcare over the holidays. Check out our 11 tricks to get school-aged kids looked after for less. We've also got a list of ideas and offers for ways to keep children entertained.
Can I get help for after school care?
As long as you get your childcare through an approved, registered provider, you can claim back after-school or school holiday costs in the same way you normally would. This can include different types of childcare – such as childminders, play schemes, nurseries and clubs (including clubs and camps that run over the holidays).
If you ask, most providers will simply tell you if they're registered. You can also find out from your local authority's children's services department or search for your nearest family information service on the Family and Childcare Trust website, which should be able to tell you about the provision available in your area.
1. 'Free' childcare for three or four-year-olds (and some younger)
Before you pay for ANY childcare, check if you can get up to 30 funded hours each week. The hours are typically for term time weeks (38 weeks), though you’re often able to stretch them over the whole year (which means you’d get 22 hours a week, if you qualify for 30 hours).
How many funded hours you can get, how old your child needs to be to access them, and who qualifies also differs by nation (though you'll always have to you’ll need to use the hours with an approved or registered provider).
Here's an overview of which nations offer what, the links for each country will take you to more details on how funded hours work:
9-23 months | 2 years | 3 years | 4 years | |
|---|---|---|---|---|
Working parents get 30 hours a week for 38 weeks | Working parents get 30 hours a week for 38 weeks / | All parents get 15 hours a week over 38 weeks / | All parents get 15 hours a week for 38 weeks/ | |
None | 12.5 hours a week of Flying Start childcare is gradually being rolled out to all 2 year olds | Working parents get 30 hours a week for up to 48 weeks | Working parents get 30 hours a week for up to 48 weeks | |
None | Parents on certain benefits can get funding, or if you or your child has experience of care | All parents get 1,140 hours a year (30 hours for 38 weeks if taken during term time) | All parents get 1,140 hours a year (30 hours for 38 weeks if taken during term time) | |
None | None | All parents get 12.5 hours a week for 38 weeks | All parents get 12.5 hours a week for 38 weeks |
Even if you get 30 funded hours, you still might have to pay
Since government funding is actually 1,140 hours of childcare a year, this means that for a full 30-hour week, the funding will only actually cover 38 weeks. To work around this, many providers stretch their funded hours by offering fewer hours a week over the year.
Your rights on extra charges
Childcare providers can't charge mandatory top-up fees, or make you pay for things like rent, staff costs, utilities, registration fees or essential learning materials as a condition of accessing your funded hours.
They can charge for genuine optional extras – such as meals, snacks, nappies, sun cream, trips or extra activities – but these must be clearly itemised, you must be able to opt out without losing your funded place, and providers should offer a reasonable alternative (such as letting you bring your own lunch or nappies). See our news story on childcare extra charges.
How funded hours work in England
In England, if you have a child aged nine months to four years, you'll could get up to 30 hours of funded childcare a week.
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If your child is 9-23 months. Non-working parents won’t get anything, but eligible working parents can get 30 hours a week.
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If your child is two. Eligible working parents can get 30 hours a week. If you’re out or work or aren’t an eligible working parent, you can get 15 hours a week if you’re on certain benefits.
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If your child is three or four. All children qualify for 15 hours a week. If you’re a eligible working parent, you can get an additional 15 hours.
The 30 or 15 hours per week are calculated based on you taking them during term time, which lasts 38 weeks. You can also choose to take the hours over the whole year – so if you get 30 hours during term time, this will work out at 22 hours a week over the year.
To be considered an eligible working parent you (and your parter, if you have one) will both need to:
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Be in work (or taking an approved leave, like parental leave or sick leave)
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Each earn a minimum of the equivalent of 16 hours a week at the national living or minimum wage
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Each earn less than £100,000.01 a year.
You'll be able to start using the funded hours from the term after your child turns the qualifying age. For example, if you qualify for funded childcare from 9 months, and your child was 9 months or older on 31 August, you'll be able to use the 30 hours' funded childcare from September. If your child turns 9 months between 1 September and 31 December you'll be able to use the 30 hours from 1 January.
How funded hours works in Wales
Parents of three and four-year-olds across Wales are entitled to up to 30 hours a week of funded childcare, across 48 weeks of the year. You can divide the hours up, but at least 10 hours a week needs to be used on early education and 20 hours on general childcare. To qualify, you must:
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Be in work
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Earn a minimum of the equivalent of 16 hours a week at the
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Earn less than £100,000.01 a year.
This applies to both parents in a couple (so each parent must fit the criteria) as well as to single parents. If you don't meet the 'working parent' criteria, you won't be eligible for any funded childcare hours.
Depending on where you live, you might also be able to get 12.5 hours a week for your 2-year-old. The Welsh government is in the process of rolling out its Flying Start scheme to all two year olds, so far Merthyr Tydfil, Newport, Swansea and Wrexham have full roll-out. Other local authorities are in the process of rolling the scheme out, to find out if you can get help contact your local family information service.
How funded childcare works in Scotland
All three and four-year-olds are entitled to 1,140 hours a year. Funded hours in Scotland cut off when your child starts school, but if your child is due to start school at 4 you can defer their entry and keep getting funded childcare.
You can also get help with childcare for your two-year-old if you receive a qualifying benefit or if you or your child has experience of care.
What type of provider is eligible, and when and where you can take your hours, varies by local authority. Use the search here under ‘How to get a place’ and it’ll take you to the relevant information on your local council’s website.
You can also contact your childcare provider to see if you can use your free allowance with it, or use the Scottish Government's Parent Club.
How funded childcare works in Northern Ireland
Three and four-year-olds get 12.5 hours a week of free pre-school education through the Pre-School Education Programme. This is available term-time either on a full-time or part-time basis.
To get it, go to the Education Authority's website to get an application form. You can apply to any number of providers, but it's best to select more than one, as your chosen provider might not have enough spaces available.
You have to supply the form and your child’s birth certificate to your first preference childcare provider by the deadline. You can find all application deadlines on the Education Authority’s website.
2. Check if you can get benefits to help with your childcare costs
If you're on a low income and the free childcare hours scheme either doesn't apply to you, or won't cover your full childcare bill, your next port of call is to check whether you can claim extra support through Universal Credit (UC).
If you're eligible, this will likely cover more of your childcare costs than Tax-Free Childcare (which we cover in step three).
Our general rule is: if your household income is under £40,000 (or possibly even up to £50,000 if you've a larger family, especially if you also pay high rent for your home), then it's worth checking if you can get Universal Credit.
You can get a quick estimate of what you might qualify for with our 10-minute benefit checker.
If you qualify for UC, you'll get what's called the 'child element', worth around £288 per child per month on top of your standard allowance. To read more about eligibility and how Universal Credit works, see our Universal Credit guide.
And, if you're in work, you'll also be able to claim back up to 85% of your childcare costs...
In work? Get help with 85% of your childcare costs through UC
If you're in work, paying for childcare (including nursery, preschool, after-school clubs, breakfast clubs, childminders, nannies, and school holiday clubs) and claiming UC, you can claim back some of your childcare costs via your online Universal Credit account.
How it works:
If you meet the following criteria, you can claim up to 85% of your childcare costs up to a maximum of £1,071 for one child and £1,836 for two or more children.
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You need to be in work, or starting a job within the next month. There's no minimum hours or earnings, but the role can't be voluntary or classed 'expenses-only'. If you live with your partner, they'll also have to be in work, or be classed as having a 'limited capability for work' by the Department for Work & Pensions.
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You must get your childcare through an approved, registered provider.
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You'll need to provide evidence of your costs. This could be: a letter from your registered childcare provider, a bank statement proving you've paid your provider, or a cash payment receipt.
You can make a claim up to three months in advance but, unless you're starting a new job or significantly increasing your hours, you will only get the money after the childcare has been provided. This means even if you pay in one upfront sum, you may get the money paid back to you in smaller instalments over a few assessment periods.
Note: If you use funded childcare hours alongside UC, you'll only be able to claim support from UC for any core childcare costs (for example, extra hours on top of the funded hours). You won't be able to claim for 'top ups' or extras that some registered providers add on to the cost of 'free' hours to pay for things like nappies and snacks.
Claim costs in advance if you're 'significantly increasing' your hours
A new feature of Universal Credit is that if you move into work or 'significantly increase' your hours, you can be paid a month of childcare costs upfront. The Department for Work and Pensions told us there is no minimum number of hours but work coaches may expect at least a few more hours of work every week.
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If you're entering work: once you know your start date, you need to find a childcare provider and get the approximate monthly cost, then submit this via your journal. You will then get the 85% of the first month credited to your account upfront.
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If you're increasing your hours: once you know what your next childcare bill will look like, you'll need to speak to your work coach (via your journal or in person) to start the process.
Scottish resident on low income? You can get extra help
If you’re a Scottish resident on a low income, and look after a child under 16, you may also be able apply for the Scottish Child Payment (£28.20 a week).
To qualify, you must be claiming one of the following benefits:
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Income-based Jobseeker’s Allowance
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Income-related Employment and Support Allowance
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Pension Credit
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Universal Credit
If your claim is successful, you'll get the payment every four weeks until your child turns 16.
You can apply online using this form. Head to our maternity grants guide for more detailed information on the scheme.
3. Check if you qualify for Tax-Free Childcare
Important: If you claim Universal Credit, you WON'T also be able to use Tax-Free Childcare. Opening a Tax-Free Childcare account will mean you stop getting paid your benefits.
Below we explain how Tax Free Childcare works, but first a quick word from MSE founder Martin Lewis...
Tax-Free Childcare is appallingly named, DON'T let it confuse you.
Calling the scheme Tax-Free Childcare was a political spin to ensure government gets credit for the scheme.
Unfortunately the name is appallingly misleading, and probably partly responsible for the scheme having a much lower take up than it should. It's not about tax in anyway, and isn’t linked to the tax rate you pay.
A better name would be 'Working Family Childcare Top-up', because it's effectively a discounted childcare savings scheme where you save and then pay for childcare with a 25% top-up.
Even if you’re not entitled to benefits, you might still qualify for Tax-Free Childcare instead.
Tax-Free Childcare is a Government-backed scheme which helps working parents with the cost of childcare. The scheme, which launched in 2017, gives eligible families an extra 20% towards their childcare costs.
Tax-Free Childcare is designed so that for every 80p you put in, the government will add 20p – so it effectively gives you basic-rate tax back on what you pay (hence the scheme's name).
You can use the scheme to pay for up to £10,000 of childcare per child each year – meaning you'd pay up to £8,000 and would get up to an extra £2,000 per child each year. If your child is disabled, you can get up to £4,000 extra a year.
You need to be in work to qualify and earn £100,000 or less – this includes those who are self-employed. Tax-Free Childcare is available to both single parents and couples, but if you're in a couple, both you and your partner need to be in work to qualify, and both need to earn £100,000 or less individually.
Once your childcare bill exceeds the Government maximum, there's no more financial support for that year. You can still pay for your childcare through the scheme but you won't get a top-up, so it can be easier just to pay for your childcare directly once you've hit the limit.
The scheme's available until the 1 September after your child turns 11 (or 16 for children with disabilities). See full info in our Tax-Free Childcare guide.
If you live in Northern Ireland and use Tax Free Childcare, you can also get a Childcare Subsidy
If you have a child age 11 or younger and use Tax Free Childcare with a registered provider in Northern Ireland, you can receive 15% off your bill from your provider up to a maximum of £184 per month. This is called the Childcare Subsidy Scheme and is designed to support parents with the rising cost of childcare.
You'll need to register for each eligible child (so if you have two children under the age of 12, you'll need to register twice). Full details on how it works and how to register are available on the Early Years Childcare Subsidy Scheme website.
Childcare Vouchers
Some parents can also use Childcare Vouchers, which allow you to pay for childcare from your pre-tax salary. The scheme closed for new applicants in October 2018, but if you were signed up before then, are with the same employer, and it still offers them, you can continue to get these.
What works out best will depend on your personal circumstances. But you have to settle for one as you can't use both at the same time. For full info, see our Childcare Vouchers guide.
In addition to the options outlined above, many people with parental responsibilities are entitled to further help from the Government – see our child benefit guide for more details.
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