Help with Paying for Childcare
There are a number of ways in which you might be eligible to get financial help to pay for your childcare which are as follows:-
Child Tax Credit/Working Tax Credit - to find out if you are eligible call the Tax Credits Helpline on 0845 300 3900 or click on the Tax Credit link on the right.
Childcare Vouchers - if you work for an employer who provides a childcare voucher scheme you may be able to save upto £1195 per year on the cost of your childcare (depending on the level of income tax and National Insurance Contributions you currently pay). For parents who are unsure whether or not they would save money with childcare vouchers, or are worried about how this could affect their Tax Credits call the FIS. We have an Estimator which calculates whether you would be better off using vouchers, so call for a free calculation.
Nursery Education Funding - a free part-time nursery education place is available for all 3 and 4 year old children at either a local authority nursery or reception class or through a private, voluntary or independent nursery provider that is eligible to receive nursery education funding. At present you are entitled to 5 x 2.5 hours sessions per week (12.5 hours per week) and from September 2009 this will be increased to 15 hours per week. For a list of eligible providers contact the FIS.
For those parents who are very young, who are students, lone parents or those who are entering training or work see the Financial Help for Parents in Related Downloads on the right for further support.
Other Financial Help
Child Benefit - you normally qualify for this tax-free payment if you have children under 16 (or under 20 and in relevant education or training) and you live in the UK. The amount of Child Benefit you'll get depends on how many children you can claim for. For the tax year 2010-11 the rates are £20.30 for the eldest or only child, and £13.40 for each additional child. If you have any queries you can call the Child Benefit Helpline on 0845 302 1444 or visit the website in Related Links.
Child Trust Fund - this is a savings or investment account for every child born on or after 1st September 2002. The government pays in £250 in your child's first year, but this can be increased to £500 if your household income is low. A further £250 or £500 will be paid in when your child reaches 7 years old. Please note that your child cannot draw the money out until they are 18. For information on the different types of accounts and how to open one you can call the Child Trust Fund Helpline on 0845 302 1470 or see their website in Related Links. Please Note the new Coalition Government has announced it intends to stop payments from 1st January 2011.
Sure Start Maternity Grant - if you are on a low income and you need to buy things for a new baby you may be able to claim the Sure Start Maternity Grant (SSMG) which is a one off payment of £500. The grant is tax-free and you do not have to pay it back. To get the grant you or your partner must be getting Income Support, income based Jobseeker's Allowance, income related Employment and Support Allowance, Pension Credit, Child Tax Credit at a higher rate than the family element, or Working Tax Credit where a disability or severe disability element is included in the award. You can claim SSMG by filling in form SF100 Sure Start which you can get from your local Jobcentre Plus office.
Health in Pregnancy Grant - This new grant of £190 was introduced on April 2009 for women from the 25th week of pregnancy. The aim of the payment is to support the health of women in the last months of pregnancy. According to experts, good health in late pregnancy is important for the health and development of a child in later life. You will be able to claim the grant following a consultation with a health professional, such as a midwife, who will advise you on your needs and those of your baby. You will be given a claim form to sign and the money will be paid directly into your bank or building society account. The grant will not be taxable and will be disregarded for the purpose on income related benefits. Please Note this grant will be scrapped from April 2011.
Healthy Start - expectant mums and families with children under 4 who are on certain benefits for low income households may be entitled to weekly vouchers worth £3 which you can exchange for milk, fresh fruit, fresh vegetables and infant formula milk. You can also get free vitamins. For a leaflet and application form for Healthy Start speak to your midwife or health visitor or call 08701 555 455.
If you would like information on how to manage money, keep track of your finances, plan ahead, choose financial products and stay informed about financial matters follow the FSA link on the right.