Paying for childcare

Help with your childcare costs

Childcare can be expensive, but there is help available. If you use a registered person or setting, there are a number of options available to you.

Don't forget to also check whether you can get Tax-free Childcare and 30 hours childcare during Coronavirus.

Accessing financial help

Below are the different types of government financial support available to help pay for registered childcare and how they work with each other:

Government funding for childcare
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This parent accessed funded childcare for her 2-year-old. In this video she explains what this has meant for her.

Try the Government Childcare Calculator to find out more about the financial support available to help pay for registered childcare.

Discover more about the various financial support available to help fund your registered childcare.

15 hours’ funded childcare for 3- and 4-year-olds in England

All 3- and 4-year-olds in England and are entitled to 15 hours of early education sessions (funded childcare) a week, up to 570 hours per year. Funded childcare is intended to be flexible and you can choose whether to use your 15 hours during term-time only (over 38 weeks) or spread throughout the whole year to include school holidays (‘the stretched offer’)

To take advantage of the 15 hours’ funded childcare, your childcare provider must be registered or approved. Unlike some other government-funded childcare, there is no need to set up an online account to apply for the 15 hours; simply speak with your childcare provider who will provide you with the information you need and any forms you may need to complete.

The funding is available from the term after your child’s 3rd birthday and applies until your child reaches compulsory school age (the term following their 5th birthday). For more information, click here.

For more information, visit gov.uk/help-with-childcare-costs/free-childcare-and-education-for-2-to-4-year-olds 

Try the Government Childcare Calculator to find out more about the financial support available to help pay for registered childcare.

15 hours’ funded childcare for 2-year-olds in England

Your 2-year-old can get 15 hours a week funded childcare if you live in England and are entitled to certain benefits and your household income is below a specified amount. A 2-year-old may also qualify if 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, or have left care under an adoption order, special guardianship order or a child arrangements order.

Your 2-year-old may get free childcare if you are getting support under the Immigration and Asylum Act.

If you care for a 2-year-old they may also get free childcare if your household income is £15,400 a year or less after tax, and you have either leave to remain with ‘no recourse to public funds’ on family or private life grounds or the right to live in the UK because you’re the main carer of a British citizen (known as a ‘Zambrano Carer’). Find full details of eligibility here.

You may have to pay for extra costs like meals, nappies or trips. Contact your childcare provider or local council to find out more.

For more useful information about funded childcare for 2-year-olds, please visit our Spotlight on 2-year-olds page.

You might hear other names used to describe 15 hours’ funded childcare for 2-year-olds:

Try the Government Childcare Calculator to find out more about the financial support available to help pay for registered childcare.

30 hours’ funded childcare for 3- and 4-year-olds in England

The aim of 30 hours’ funded childcare is to financially support working families to access high-quality childcare and aims to support families:

  • With 3 and 4-year-old children
  • Provides 30 hours of free childcare or early education for 38 weeks
  • A total of 1,140 hours per year, that you can use flexibly with one or more
    childcare provider
  • Some providers will allow you  to ‘stretch’ the hours over 52 weeks, using fewer hours per week

You can apply for both the 30 hours and Tax-free childcare through the government's online Childcare Service.

To take advantage of the 30 hours’ funded childcare, your childcare provider must be registered or approved and you must make your application the term before you wish to start receiving the entitlement.

The 30 hours’ funding is available from the term after your child’s 3rd birthday and applies until your child reaches compulsory school age (the term following their 5th birthday).

Click here to find out more about the 30 hours funding, including some useful parents FAQs.

Tax-free childcare

Tax-free childcare is designed to help working families to pay for childcare. If you are eligible, you can receive up to £500 every three months (£2000 a year) for each child to help with the cost of registered childcare.

If your child is disabled, you may receive up to £4000 a year until they are 17 years old. They are eligible if they:

  • get a Disability Living Allowance, Personal Independence Payment or Armed Forces Independence Payment.
  • are registered as blind or severely sight-impaired.

Tax-free childcare is gradually replacing childcare vouchers and will reach more families, including those who are self-employed. Your childcare provider must be signed up to the scheme before you can benefit from Tax-free childcare.

The eligibility requirements for Tax-free Childcare and the 30 hours’ funded childcare in England are the same, and parents use the same online system to register for both.

To find out whether you are eligible, visit gov.uk/help-with-childcare-costs/tax-free-childcare

You cannot receive Tax-free Childcare at the same time as claiming Working Tax Credit, Child Tax Credit, Universal Credit or childcare vouchers.

To find out more about the financial support available to help with registered childcare, try the Government Childcare Calculator.

How does Tax-free childcare work?

Tax Credits

There are two types of Tax Credit available: Child Tax Credit and Working Tax Credit – both of which could help with your childcare costs.

Child Tax Credit

If you have a new baby, or you're responsible for any children aged 16 or under, you could claim Child Tax Credit. You can also qualify if you have children aged 16 to 19, as long as they're in certain types of education or training.

Some handy things to know:

  • You don’t need to be working to claim Child Tax Credit
  • Only one household can get Child Tax Credit for a child
  • Child Tax Credit won’t affect your Child Benefit.

How much could you receive?

Maximum Child Tax Credit rates for 2018 – 2019

Child Tax Credit Family Element

£545

Child Element

£2780

Disabled Child Element

£3275

Severely Disabled Child Element

£1325

 

To find out more about the financial support available to help with registered childcare, try the Government Childcare Calculator.

Childcare vouchers

The Childcare Vouchers scheme is closed to new applicants, however if you joined one of these schemes on or before 4 October 2018 you might be able to keep getting vouchers or directly contracted childcare. Find out more here.

Universal Credit

Universal Credit is a payment to help with your living costs. It’s paid monthly - or twice a month for some people in Scotland. It is replacing the following benefits, however if you are still receiving any of these benefits, you will be contacted if you need to change to Universal Credit.

Universal Credit is replacing the following benefits:

Child Tax Credit                                 Income-related Employment and Support Allowance (ESA)

Housing Benefit                                Income-based Jobseeker’s Allowance (JSA)

Working Tax Credit                          Income Support

You may be able to get it if you’re on a low income, out of work or you cannot work. Here is a guide to find out more about Universal Credit

This guide is also available in Welsh (Cymraeg).

If you’re eligible for Universal Credit, you may be able to claim back up to 85% of your childcare costs. You (and your partner if you live with them) will usually need to either be working – it doesn’t matter how many hours you or your partner work or have a job offer. Find out more about how to claim childcare costs through Universal Credit here.

Try the Government Childcare Calculator to find out more about the financial support available to help pay for registered childcare.

Student Childcare Grant

If you are a full-time higher education student, eligible for student finance, you may also be eligible for help with your childcare costs.

In England, you can apply for a Childcare Grant, which does not have to be paid back, and is paid on top of your other student finance. The Childcare Grant is managed through the CCGPS online platform, which enables you to authorise and send payments to your childcare provider(s) electronically.

For information on the current scheme in Wales, visit Student Finance Wales.

If you’re a non-EEA citizen who cannot claim benefits

Your 2-year-old may get free childcare if you are getting support under the Immigration and Asylum Act and have either:

  • claimed asylum in the UK and are waiting for a decision (known as ‘part 6’)
  • been refused asylum in the UK (known as ‘section 4’)

A 2-year-old you care for may also get free childcare if your household income is £15,400 a year or less after tax, and you have either:

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