Question 1

How does Tax-Free Childcare work?

Accepted Answer

With Tax-Free Childcare, for every £8 you pay into a special online account, the government will add an extra £2. You can get up to £2,000 per child per year towards your childcare costs. This scheme is available for working parents of children aged 0-11 (or 17 for disabled children).

Question 2

Who is eligible for 30 hours free childcare?

Accepted Answer

In England, 30 hours free childcare is available for working parents of children from 9 months up to school age. To be eligible, you (and your partner, if you have one) must each expect to earn at least the equivalent of 16 hours a week at the National Minimum or Living Wage, and under £100,000 adjusted net income per year. Eligibility differs in Scotland, Wales, and NI.

Question 3

What is the difference between Tax-Free Childcare and childcare vouchers?

Accepted Answer

Childcare vouchers were a salary sacrifice scheme that closed to new entrants in October 2018. If you are still in a voucher scheme with your employer, you can continue to use it. Tax-Free Childcare is the current government scheme available to all eligible working parents. You cannot use both at the same time.

Question 4

How does childcare affect my tax and take-home pay?

Accepted Answer

Unless you are using a closed salary sacrifice voucher scheme, your childcare costs do not directly reduce your income tax. However, schemes like Tax-Free Childcare reduce the overall cost, freeing up more of your take-home pay. You can see how this fits into your budget by using our main take-home pay calculator.

Question 5

What are the average nursery fees in the UK?

Accepted Answer

Average nursery fees vary significantly across the UK. For a full-time place (50 hours/week) for a child under two, you can expect to pay over £14,000 a year on average. Costs are highest in London and the South East and generally lower in Scotland and the North of England.

Question 6

How does partner income affect childcare benefits?

Accepted Answer

For schemes like Tax-Free Childcare and 30 Hours Free Childcare, both partners in a household must meet the eligibility criteria. This usually means both must be working and each earning over a minimum threshold (approx. £8,600/year) but under £100,000 per year. If one partner earns over £100,000, the household loses eligibility for these schemes.

Question 7

What is Universal Credit childcare support?

Accepted Answer

If you are claiming Universal Credit, you may be able to claim back up to 85% of your paid childcare costs. The amount you can get is capped. As of 2024, the cap is £1,014.63 for one child and £1,739.37 for two or more children per month. You must be in work to qualify.

Question 8

How can I find childcare funding or subsidies?

Accepted Answer

You can find all available government support, including Tax-Free Childcare, 15/30 hours, and Universal Credit for childcare, on the official Childcare Choices website run by the UK government. It provides a questionnaire to help you find the right support for your family.

Question 9

How can I calculate my childcare costs in England, Scotland, Wales, or Northern Ireland?

Accepted Answer

Our childcare cost calculator UK lets you select your country to provide a more accurate estimate. It adjusts the 'free hours' entitlement based on the specific rules for England, Scotland, Wales, and Northern Ireland, giving you a clearer picture of your childcare cost by region in the UK.

Question 10

What is the difference between full-time and part-time childcare costs in the UK?

Accepted Answer

Full-time childcare is typically considered around 50 hours per week, while part-time may be 25-30 hours. The cost is usually proportional, but some nurseries offer slightly lower daily rates for full-time places. The average nursery cost per week in the UK for a full-time place is over £280.

Childcare Cost Calculator UK

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