MARTIN Lewis’ MoneySavingExpert has warned parents not to miss out on £1,000’s worth of free childcare this summer holiday.
The government has a number of schemes available for households to help with the financial burden of childcare costs.
However, many families are unaware of the support available to them, so it is important to be vigilant to ensure you do not miss out.
Martin‘s team told readers of his money-saving blog about three easily missed funds available to households.
This week’s newsletter reads: “Do you pay for childcare? Whether year-round or just in summer, millions are missing out on £1,000s a year of help.
“The school summer holidays can add an extra burden on many parents, yet millions may be unaware of the help that’s available, both for summer and across the year.
“Unless you earn over £100,000 a year, don’t assume you can’t get help.”
This help is available all year round but it is worth checking if you have missed out on any of the support ahead of the end of term.
Before forking out for childcare costs the blog urged parents to check if they are entitled to 30 hours of free childcare a week.
If your child is aged between nine months to four years old in England or is three to four years old in the rest of the UK, you are entitled to free care.
The newsletter said: “If your child is nine months to four years old in England (or three or four years old in the rest of the UK), you can get up to 30 hours of what’s often called ‘free’ childcare a week.
“Though more accurate would be to call it ‘funded’, as you may need to pay a top-up depending on the cost of the childcare.”
The amount of relief you get depends on the age of your child.
If your child is:
You will not be eligible if your child does not usually live with you.
If you are keen to apply for this scheme it is important to remember that even though the childcare is free you may have to pay for extras.
These can include, nappies, meals and additional hours.
If you are on Universal Credit and also have a job you can claim up to £1,739 to put towards childcare costs.
The amount you can receive depends on the number of children you have.
Parents on Universal Credit with one child under 17 can claim up to £1,015 a month.
Meanwhile, parents of two or more children or more eligible for up to £1,739 to help pay for childcare costs – up from £950 and £1,630 respectively.
You normally need to pay for the child care costs first and then the money is given back to you within the month you report it.
Parents can claim back up to three months of past childcare costs at a time – but if you’re claiming for more than one month you might not get all the money back.
You can use the money to pay for holiday clubs, after-school clubs and breakfast clubs.
It is important to remember that if you live with a partner, you both need to be working unless your partner cannot look after your children.
If you are on tax credits you can also claim back up to 70% of childcare costs this way.
However, the newsletter explained that some families will be “better off” switching to UC as more childcare money’s available that way.
“Be careful though, seek one-on-one advice before switching,” the website warned.
Parents can also get up to £2,000 a year for each of their children to help with the costs of childcare.
This goes up to £4,000 a year if your child is disabled.
This is a little-known benefit, with the money-saving blog warning that 800,000 parents are unaware the scheme exists.
To qualify, you or your partner need to be either employed or self-employed.
But remember you will not get the money in one lump sum.
If you are eligible for the scheme, you will then need to set up an online childcare account for your child.
For every £8 you pay into this account, the government will pay £2 to use to pay your provider.
For more information on setting up an account, you can visit the government website.
You can get Tax-Free Childcare at the same time as 15 or 30 hours of free childcare if you’re eligible for both.
Your childcare provider must be signed up to the scheme before you can pay them and benefit from Tax-Free Childcare.
To avoid disappointments, check with your provider to see if they’re signed up.
One follower of MSE explained to readers how applying helped them save £100 a month.
“I had no idea about Tax-Free Childcare until I got your email highlighting that I could pay for my after-school care via it and save myself 20% off the fees,” a post read.
“Thanks to Martin and his team, I now save around £100/mth. I am so grateful. Thank you.”
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to
Charity Turn2Us’ benefits calculator works out what you could get.
Entitledto’s free calculator determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data.
You can use Policy in Practice’s calculator to determine which benefits you could receive and how much cash you’ll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
There is plenty of other government support available to families with children, so it is always worth chatting with your council to see what you could be eligible for.
You get child benefit if you’re responsible for bringing up a child who is under 16 or under 20 if they are in approved education or training
The payment is used to help parents cover the costs of childcare.
It is paid at two weekly rates – £25.60 for your eldest or only child and £16.95 for any additional children.
Payments are usually made every four weeks, on a Monday or Tuesday, but sometimes are made weekly.
If you are claiming child benefit for a child under 12, you also receive National Insurance (NI) credits.
NICs count towards your State Pension so claiming the benefit can be useful if you are missing any.
If you’re more than 10 weeks pregnant or have a child under four, you may be able to get help to buy healthy food and milk.
Families on Universal Credit can apply online if their take-home pay is £408 or less from employment.
If you get Child Tax Credit, you may be eligible for Healthy Start if:
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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