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hildcare cost benefits are a minefield and, personally, I find it unsurprising that £1000s are being left unclaimed often by the people who need the money most. Tax credits? Childcare vouchers? 15 or 30 hours free? Which way to go and which is best for you? Let’s try and sort it out.
Understanding Childcare Cost Benefits The first thing to realise is that “Childcare” includes all children, including those of school age. Also all childcare provisions for which you can claim any help, must be an Ofsted-registered provider. Registered providers include nannies, childminders, au pairs, nurseries, playgroups, pre-schools, before and after school clubs and summer schools. The provider should be able to tell you if they are registered but, if you would like a list of local registered providers, go to www. calderdale.gov.uk and follow the ‘Education and Learning’ link.
Free Childcare for three and four (and two) year olds.
Starting from the beginning of term after your child’s third birthday, everyone (and this IS everyone) is entitled to 570 hours of free childcare per year. This is usually taken up as 15 hours per week for the 38 weeks of the school year, though you may be able to do less hours per week for more weeks of the year. To access this benefit simply ask your local childcare provider if they have space. Be aware of potential add-on costs though, such as meals or nappies. Some families are entitled to increase this free childcare to 30 hours per week (or 1,140 hours per year) if they meet certain criteria. If both parents (in a couple) or the main parent (in a single parent family) earns, or is expected to earn, over £1,707.68 in the next 3 months (this odd figure is calculated based on working 16 hours a week for the National Living Wage for over 25s) but less than £100,000 per year, then they can claim. If you are self employed, you can average out your annual income if necessary. To access this benefit you will need to visit www.gov.uk/apply-30-hours-free-childcare and fill in the form. Once approved you will be given a code to pass on to your childcare provider. Your extra free hours should then begin at the beginning of the next term. Two year olds from certain low-income families are also entitled to free childcare. Visit www.calderdale.gov.uk to find out more.
If you are still receiving Tax Credits.
Tax credits have been replaced by Universal Credit for a lot of people and, from July ‘19, everyone still on the old scheme will begin to be moved over to the Universal Credit scheme. But for now, those who were claiming the Childcare element of the Working Tax Credit scheme will still receive them. (NB. You may be better off moving to the Universal Credit scheme sooner. There are online calculators available to help you assess whether this will be the case for you).
Childcare costs within Universal Credit.
If you are receiving Universal Credit you can claim back up to 85% if your childcare costs, up to a maximum of £646 a month for one child or £1,108 per month for two or more children. You can only claim the money after you prove you have paid it and you need to apply, each month, through your Universal Credit account. The money will be reimbursed to you through your next month’s UC payment.
