Getting help with your childcare costs
Louisa Sherlock
Associate EditorFinding the right childcare for your child — within your budget — can be a daunting task. But help is available with your childcare fees. Find out what you're eligible for, right here.
From free childcare for 15 and 30 hours a week to Tax-Free Childcare and Universal Credit, there are lots of different ways you can get support with paying for your nursery, childminder or other approved childcare.
Josh Cottell, former research and policy officer from the charity Coram Family and Childcare says:
‘It’s very complicated and lots of parents risk missing out if they’re not aware of the variety of ways they can get support towards their childcare costs.
‘We recommend parents go to the Government Childcare Choices website or speak to their local family information service, run by the council, to get information about what childcare is available locally and the support that’s out there with paying for childcare.’
How much does childcare cost?
According to the 2022 Childcare Survey from Coram Family and Childcare, 'parents are now paying 2.5% more for childcare for children under two; 2% more for children aged two; and 3.5% more for 3–4-year-olds than they were a year ago.'
They say, 'The steep increase in the cost of living and the economic impact of the pandemic means Britain’s parents are struggling even more with rising childcare costs and a sharp drop in the availability of places.'
Average UK nursery costs
£138.70 a week for a part time nursery place (25 hours a week) for a child under two.
£133.69 a week for a part time nursery place for a child aged two.
£269.86 a week for a full time nursery place (50 hours) for a child under two.
£262.16 a week for a full time nursery place for a child aged two.
Average UK childminder costs
£124.41 a week for a part time childminder for a child under two.
£122.03 a week for a part time childminder for a child aged two and over.
£237.28 a week for a full time childminder (50 hours a week) for a child under two.
£235.73 a week for a full time childminder for a child aged two and over.
Josh says:
‘We have seen fairly consistent price rises in childcare.
‘However, don’t give up because there are lots of different ways of getting support with childcare. Don’t just take into account the price that you see on the nursery or childminder website.
‘Think about what support is there for you and how might that help you afford childcare.’
What help can I get towards childcare fees?
There are seven ways you can get support with paying for childcare says Josh. These are:
1. Funded education and childcare for two-year-olds
If you live in England, this funded childcare is available from the term after your child’s second birthday.
It covers 15 hours a week for 38 weeks of the year. You may be eligible to claim if you receive certain benefits, your child is disabled or looked after.
If you live in Scotland and your child is under two, you’re entitled up to 1,140 hours per year if you’re receiving certain benefits (including in-work benefits) or children who are looked after.
If you live in Wales you’re entitled to 12.5 hours a week for 39 weeks a year for 2 to 3 year olds in Flying Start areas (geographic areas which are deprived).
2. 15 hours free childcare for three and four-year-olds
If your child is aged three or four and you live in England, they are entitled to 15 hours of free early years education or childcare a week.
This can usually only be taken during term time — so 38 weeks a year — and works out as 570 free hours every year. It should be deducted off your childcare bill the term after your child has turned three.
If you live in Scotland from August 2021, all 3 and 4 year olds are entitled to 1,140 hours a year. (30 hours a week during term time, or 22 hours spread across the year).
If you live in Wales you’re entitled to 10 hours free childcare a week. This goes up to 12.5 hours a week for three-year-olds in Flying Start areas.
3. 30 hours free childcare for three and four-year-olds
As above, this is available if your children are aged three and four and you live in England or Scotland. However there are certain conditions you need to meet to claim the 30 hours free childcare, including working at least 16 hours a week.
Find out more about 30 hours free childcare.
Again, If you live in Scotland from August 2021, all 3 and 4 year olds are entitled to 1,140 hours a year. (30 hours a week during term time, or 22 hours spread across the year).
If you live in Wales and are in work, you'll be entitled to 30 hours per week for 48 weeks a year. At the moment this is being piloted in some local areas.
4. Universal Credit
You could also get help towards your childcare costs through Universal Credit.
You can get up to 85% of childcare costs paid back to you. The maximum amount a month is:
- £646 for one child
- £1,108 for 2 or more children
Universal Credit is the new all-in-one benefit being rolled out by the government. It's a single monthly payment for people in or out of work, which merges together some of the benefits and tax credits that you might be getting now.
Find out more about Universal Credit and if you’re eligible to claim.
5. Working Tax Credit
You could be entitled to help towards your childcare costs through the childcare element of working tax credit.
However this has been replaced by Universal Credit for most people.
6. Tax-Free Childcare
This enables working parents to get up to £2,000 per child per year off their childcare bill, or £4,000 if your child is disabled.
This scheme has replaced the childcare vouchers scheme.
You can claim Tax-Free Childcare along with the 30 hours free childcare. However, you can’t claim if you’re getting Working Tax Credit or Universal Credit.
Find out how tax-free childcare works and if you're eligible.
7. Childcare vouchers
Childcare vouchers (also known as Employer-Supported Childcare) are tax and National Insurance Contribution-free vouchers that allow you to cut the costs of registered childcare.
This scheme is now closed to new applicants.
Find out more about Childcare vouchers here.
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What childcare can I get help paying for?
According to the Government Childcare Choices, you can only help towards the fees if you choose ‘approved childcare’. This includes:
- a registered nursery, childminder, club or playscheme;
- a childminder with an Ofsted-registered childminding agency;
- a registered school;
- a home care worker working for a registered home care agency.
Josh says:
‘It has to be Ofsted-registered childcare. It can really help parents if they find out what is on offer locally and the support that’s there in paying for it.’
I'm a single parent. Can I get extra help towards childcare costs?
Unfortunately not. And according to Josh, it might be harder to access some of the existing benefits. He says:
‘It can be more difficult for single parents to make work pay after paying for childcare. That’s why it’s really important that single parents make sure they are accessing all the support they are eligible for.
'Some single parents may need childcare outside the typical 9 to 5, and we recommend speaking to your local Family Information Service to find out what’s available.
‘If you’re a single parent who is getting help with childcare from your mum or dad, they could be eligible for National Insurance credits.
'These are for grandparents, or other family members, who care for a child under 12 while their parent is working, and were introduced to recognise the value of the care that grandparents provide.’
What about childcare costs for children with special educational needs or disabilities (SEND)?
If the childcare provider is Ofsted registered, you could get help paying for this through:
- the childcare element of Working Tax Credit
- Universal Credit
- Tax Free Childcare
- Childcare vouchers
If the childcare setting is named in your child’s Education, Health and Care plan (EHC), you might be able to use direct payments or part of a personal budget to pay for it.
Parents of a child with SEND are also eligible for free childcare and Tax Free childcare like other parents.
Josh says:
‘For parents of a child with special educational needs or disabilities, it can be more difficult to find a childcare place.
‘However, all councils in England are required to publish a ‘Local Offer’ which should contain lots of information, including about local childcare options for children with a special educational need or disability.
‘The Local Offer should be published on your council’s website, and if you would like to find out more about it you can contact your local Family Information Service, run by the council.’
What help do you get towards your childcare costs? Join the chat in our thread, below.
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