Government childcare funding is confusing. We will continue to campaign to make it simpler so more families claim it.
In the meantime, here are all the childcare funding support options.
Tax-Free Childcare
What is Tax-Free Childcare?
Tax-Free Childcare helps working parents with the cost of childcare. For every £8 you pay towards childcare, the government adds £2, up to a maximum of £2,000 per child per year (or £4,000 for children with disabilities).
This can be used to pay for Ofsted-registered childcare, including nurseries, childminders, after-school clubs, and holiday clubs. It’s a great way to reduce your childcare expenses and make going back to work more affordable.
Who’s eligible to claim Tax Free Childcare?
To be eligible:
- you and any partner must each be earning at least the National Minimum Wage or National Living Wage equivalent for 16 hours a week
- you can’t earn more than £100,000 per year
- you have a child or children aged under 12 (or under 17 if they have a disability)
- your childcare provider must be signed up for the scheme to receive the Tax-Free Childcare payments.
How to use Tax-Free Childcare
You can apply for Tax-Free Childcare on the government’s website.
You’ll need some information to hand, like your National Insurance number and your childcare provider’s details.
Once approved, you’ll have an online account where you can pay money in, and the government will add their contribution. You then pay your childcare provider directly from this account. It’s a straightforward process that could save you a significant amount of money on childcare costs.
If you’ve already registered, you can sign in to your childcare account.
You can get Tax-Free Childcare at the same time as 15 or 30 hours free childcare if you’re eligible for both.
If your child is disabled
If you have a disabled child, you can use the extra Tax-Free Childcare money to help pay for extra hours of childcare.
You can also use it to help pay your childcare provider so they can get specialist equipment for your child such as mobility aids.
Talk to them about what equipment your child can get.
Free childcare hours
How do government free childcare hours work?
From September 2024 eligible children over 9 months old can claim 15 hours free childcare a week.
From September 2025, eligible children aged 3+ can claim 30 hours a week.
All children aged 3+ regardless of income can claim 15 free hours a week.
What free hours are you entitled to?
As the new government free hours scheme rolls out you can claim based on when your child was born and when the scheme becomes available. This table breaks it down so you can see exactly what you’ll get based on when your child was born.
Some small print to be aware of
- The free hours are for 38 weeks a year so your nursery or childminder will likely spread the hours over 52 weeks a year so you don’t pay more during school holidays
- The government gives your local authority money for the free hours and they pass this to providers. Different local authorities will give out different amounts. It isn’t enough to cover the providers costs so most will ask you to pay more to cover a “top-up”
- You can’t claim the new free hours unless you and your partner (if you have one) earn on average, the equivalent of 16 hours a week national minimum or living wage and no more than £100,000 a year
Additional funding for two year olds
You can claim an additional 15 hours a week until September 2025 (when all two year olds will get 30 free hours a week) if you’re a working family on a low income. need to earn less. How much you can earn depends on where you live, so check the detailed breakdown on the Government website.
EYPP
Early years pupil premium (EYPP) is a special entitlement that some 2-year-olds can get so your childcarer can buy them additional materials and take them on extra trips, classes etc. The money is paid directly to your childcare provider, and will be used by them to support your child’s development and quality of care. If you’re entitled to 2-year-old funding your child is probably entitled to EYPP as well.
Universal 15 free hours
All children in England are entitled to 15 hours of funded childcare per week from the first school term after their 3rd birthday. You can claim this even if your higher than the eligibility for the new 15 & 30 hours free childcare.
The same small print applies. The funded hours are only during term time, but some childcare providers will let you split them up across the year instead. so please talk to them about what they can offer.
Children aged 0–15 — Student childcare grant
If you are a full-time, higher education student, and your child is under 15 (or under 17 with special educational needs), you could be entitled to a student grant to help pay for childcare.
Children aged 0–17 — Additional support for children with disabilities
Children with special needs and disabilities are often entitled to additional financial support. This is quite complex and will differ depending on where you live and how old your child is, as well as what kind of support they need. You can read more about additional support for children with special needs or disabilities.
We hope the above has given you a better idea of what you might be entitled to.
If you’re considering a nanny whether part-time or full-time take a look at how we can help.