THOUSANDS of parents could be missing out on up to £2,000 in childcare help this half term – here’s how to claim.
Families might not know that they can use the government’s Tax-Free Childcare scheme to get up to £500 every three months.
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That adds up to a maximum of £2,000 a year – and could be handy as childcare fees remain high and families face a cost of living crunch with less cash to spare.
This could rise to even more if your child is disabled – you could get up to £4,000 a year in this case.
Nearly 316,000 families used the scheme in September 2021, with the government dishing out £35 million in help.
It marked an increase of 90,000 more families tapping into the available cash compared to the previous year.
But thousands of parents are “still unaware of its existence”, Interactive Investor personal finance campaigner Myron Jobson said.
“The uptake of the scheme continues to fall far below original estimates which is largely due to under promotion of the initiative.
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“Greater promotion of the initiative is still needed to raise awareness while encouraging even more parents to apply.”
We explain who is eligible for the help and how to apply.
Who can get the help?
Your child must be aged under 11, which rises to 17 if they have a disability, to use the scheme – and there is other eligibility criteria you have to hit too.
You can usually get the help if you – and your partner, if you have one – are in work, on sick leave or annual leave, or are on shared parental, maternity, paternity or adoption leave.
If you’re not working, you may be eligible for the help if you get one of the following benefits, and if your partner is still working:
- Incapacity Benefit
- Severe Disablement Allowance
- Carer’s Allowance
- Contribution-based Employment and Support Allowance
You are also expected to earn over a certain amount over the next three months too.
You’re expected to earn at least £1,853.28, which is the National Living Wage for those over 23. Your partner must earn this too.
It’s important to note you cannot get tax-free childcare at the same time as claiming Working Tax Credit, Child Tax Credit, Universal Credit or childcare vouchers.
How do I apply?
You’ll need to apply on the gov.uk website to set up an online account to start claiming the help.
You will need some personal information to hand – and your partner’s too if you have one – including your National Insurance number or Unique Taxpayer Reference number if you are self-employed.
In your application, you will be assessed to see if you are eligible for the help, which can take up to seven days.
It takes 20 minutes to apply, so make sure you have some spare time for the application process.
If you are successful, you will have set up your own online account.
How it works is that for every £8 you pay into the account, the government will chip in £2 to pay to your childcare provider.
Struggling families can also apply for free cash to help with bills, supermarket shops and more using the Household Support Fund.
You could also get up to £8,500 a year for FREE towards your rent – here’s how to claim.
The Welfare Assistance scheme could also see you get help from your local council to help pay for essential bills.
I had no childcare for a job interview so I took my toddler to my job interview, he wore a suit and I wrote him his own
