Help with childcare costs

Available childcare support schemes

Families looking for help with childcare costs have several options available to ease the strain of paying for nurseries and clubs. This applies to England. You can use different schemes depending on whether you work, study, or receive certain benefits. Approved childcare providers include registered nurseries, childminders, after-school clubs, and breakfast clubs. Relatives usually cannot be paid through these schemes unless they are registered childminders caring for your child outside your home.

• Universal Credit to help working parents reclaim a portion of their nursery or club bills.
• Tax-free accounts where the government tops up money you pay in for your childcare provider.
• Free childcare hours for eligible families with young children.

Getting help through Universal Credit

If you receive Universal Credit and work, you can claim back a large share of your childcare bills. Both partners in a couple usually need to be working, unless one has a health condition or cares for someone. You must pay your childcare provider upfront and then report the payments. Your money is paid back in arrears through your regular Universal Credit payment.

1. Pay your registered childcare provider for the care you received.
2. Sign in to your online account and report your childcare payments.
3. Provide proof of what you paid to your work coach.
4. Receive your money back added to your next monthly payment.

A common mistake is reporting your payments too late. Make sure you report them within the correct timeframe, or you might miss out on getting your money back. If you struggle with upfront costs, you can talk to your work coach about extra help from support funds.

Using tax-free childcare

Another option for working families is setting up a special online account. For money you put in to pay your approved provider, the government adds an extra top-up payment. You cannot use this scheme at the same time as Universal Credit or childcare vouchers, so you should compare your options carefully using online calculators.

• You set up an online account for your household.
• You pay money into the account to cover your care bills.
• The government adds a top-up amount to your deposits.
• You use the total balance to pay your nursery or childminder.

You must remember to sign in to your account regularly to confirm your details stay correct. If you do not confirm your details, your payments will stop. Earnings rules apply to this scheme, meaning you and your partner must expect to earn a minimum amount from your jobs.

Checking your eligibility

Working out what you can get depends on your income, your job, and your family setup. You must meet specific working rules and earnings thresholds to qualify for certain schemes. You can also get free hours for younger children if you receive certain benefits or meet low-income rules.

• Check if your expected earnings meet the required minimum levels for working parent schemes.
• Check if your savings are within the allowed capital limits if you claim means-tested benefits.
• Check your child's age and whether they have any disabilities that extend their eligibility.

How to apply for support

1. Check which scheme best fits your household budget using an online comparison tool.
2. Gather your National Insurance numbers, identification, and details of your earnings.
3. Create an online government account or report changes in your benefit journal.
4. Confirm your details every few months to keep your support running smoothly.

A common mistake is closing an existing benefit before your new application is fully approved. Always wait for a final decision on your new choice before stopping your current support. You can ask your local council or Jobcentre if you need guidance.