WORKING parents will soon get a major boost to childcare hours in a major shake-up.
Right now, all parents of three and four-year-olds can claim 570 hours of free childcare a year, which equates to 15 hours a week.
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Some parents can get 30 hours a week too, depending on their circumstances.
But from April 2024, working parents of two-year-olds will be able to access 15 hours of free childcare per week.
This will be extended to working parents of nine-month-olds to two-year-olds from September 2024.
Then, from September 2025, all eligible working parents of children aged nine months up to three years will be able to access 30 hours of free childcare a week.
It means that working parents are one step closer to getting free childcare hours from the end of maternity leave all the way through until their child starts school.
The move will save the average family £6,500 a year if they’re eligible for the full 30 free hours entitlement, according to the Government.
Claire Coutinho, minister for children, families and wellbeing, said: “The Education Secretary, Gillian Keegan, just announced increases to the amount we pay nurseries and childminders to offer free hours to two-year-olds.
“Today we’re giving providers further confidence that the largest-ever expansion of free hours over the coming months and years will be properly and fairly funded.
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“Working parents can start getting ready for a helping hand with costs from the end of maternity leave right up until the end of primary school, with average savings of £6,500 a year if they use the full 30 free hours for their children.”
At the moment, to qualify for 30 hours of free childcare parents need to be in work, earn a minimum of the equivalent of 16 hours a week at the national living wage and earn less than £100,000 a year.
The rule applies to both those in a couple and single parents.
But if either of you earn over £100,000 a year, you’ll only qualify for 15 hours of free chilcare.
How can I apply for free childcare?
As it stands, you can apply for 15 hours free childcare through a nearby childcare provider or your local council.
If you don’t know what council area you fall under, you can find it by using the government’s council locator tool.
Meanwhile, you can apply for 30 hours free childcare on the government’s website.
You can apply for 30 hours free childcare from when your child is two years and 36 weeks old.
But depending on when they reach that age, you will start receiving free childcare help from different dates.
Once you have applied for a childcare account you get a code which you have to give to your provider.
You should check with your childcare provider to find out the exact date your 30 hours of free childcare will start.
Crucially, you have to reconfirm your eligibility every three months.
The full details about how to apply for the extension on free childcare from April 2024 have not yet been announced.
What other childcare help is available?
There are a range of tax breaks and grants to help make childcare more affordable.
You can usually use them for care like registered childminders, nannies, playschemes, nurseries, and holiday clubs.
It’s always worth checking the government’s handy childcare costs calculator to find out which scheme will save you the most money, as not all of them can be used at the same time.
Free childcare for two-year-olds
Parents living in England and claiming any of the following benefits can access some free childcare for their two-year-olds right now:
- Income support
- Income-based jobseeker’s allowance (JSA)
- Income-related employment and support allowance (ESA)
- Universal Credit (where household income is £15,400 a year or less after tax, not including benefit payments)
- Tax credits (where household income is £16,190 a year or less before tax)
- Pension Credit (guaranteed element)
2-year-olds can also get free childcare if they:
- Are looked after by a local authority
- Have an education, health and care (EHC) plan
- Get disability living allowance
- Have left care under an adoption order, special guardianship order or a child arrangements order
You may have to pay for extra costs like meals, nappies or trips.
Contact your childcare provider or local council to find out more.
Tax-free childcare
If you don’t qualify for Universal Credit you may qualify for tax-free childcare.
You can get up to £500 every three months – up to a maximum of £2,000 a year – for each of your children to help with the costs of childcare.
If your child is disabled, it’s even more – £1,000 every three months, up to £4,000 per year.
To receive the tax-free benefit you need to create an online childcare account.
For every £8 you pay into this account, the government will add £2 which you can use to pay your approved provider.
Child benefit
You can get child benefit if you’re responsible for a child aged under 16, or if they are under 20 and in approved education or training.
Child benefit is currently worth £24 a week for the eldest child or only child, adding up to £1,248 a year.
For each subsequent child, parents get £15.90 a week – or £826.80 a year.
The free money is paid every four weeks, and there’s no limit to how many children you can apply for – though only one person can claim for each child.
But do note that those who earn more than £50,000 a year may need to pay back some of their child benefit in tax.
While this help isn’t directly for childcare, the money can help to cut costs.
