Earnings: Childcare support

Childcare is expensive, but there is support available to help manage the costs. The government offers up to 30 hours of free childcare a week to help working parents.

So, who can get it? First, it’s for children aged nine months old until they start school. You can use the hours with approved childcare providers like nurseries, playgroups and childminders. To qualify you and your partner, if you have one, need to be working. That means you should each be earning the equivalent of at least 16 hours a week at minimum wage.If you’re self-employed, that still counts as long as you meet the earnings level. There’s also an upper limit. If you or your partner earn more than a certain amount a year, you won’t be eligible.

Here’s a quick example. Let’s say Sam works part-time, 20 hours a week, and earns above the minimum wage. Because he is above the minimum earnings threshold, Sam qualifies for the scheme. With a toddler at home, Sam can get up to 30 hours of free childcare each week during term time. That saves a huge amount on nursery fees and makes it easier to balance work and family life. If you’re working on a lower to middle income and have a child under school age, you could get 30 hours of free childcare a week. This is a big help with costs and gives you more flexibility.

There’s also Tax-Free Childcare, which is an account you can use to pay for Ofsted-registered childcare, such as childminders or after-school clubs. The government adds money into this account to help with costs, but you need to set it up first. It’s a scheme that helps working parents with the cost of childcare. Whether you are a single parent or part of a couple, you may be eligible if you’re working and using childcare. You open a special childcare account on gov.uk. For every amount you pay in, the government adds extra money to help cover your childcare costs. You can then use that money to pay your child care provider directly. This can reduce how much you spend on childcare and may help you take on more hours, accept a new job or even train for something new. But there is an income limit. If you or your partner earn above a certain amount, you may not be eligible. It’s always worth checking the most up-to-date guidance online to see if you qualify.

Finally, Child Benefit is a government payment made every four weeks, designed to help with the cost of raising a child. It is paid to one person who is responsible for the child, and the amount paid depends on how many children you have. The child must be under 16 years old or under 20 years old and in approved full-time education or training. Child benefit can also protect a non-working or low-earning parent’s entitlement to state pension. The amount of child benefit you can keep depends on your income. If the highest earner in your household earns above a certain level, the High Income Child Benefit Charge applies. This means some or all of the benefit may need to be paid back through tax. Even if you will have to pay the benefit back as tax, it’s still recommended to claim it.

There are different types of support available to help with the cost of raising children. What you can get depends on your work income and family circumstances, but these schemes are designed to make life a little easier for parents. They make it possible to stay in work or take on more hours, even when childcare is expensive. It’s always worth checking what you’re entitled to on gov.uk so you don’t miss out on support.

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