MARTIN Lewis has issued an urgent warning to 800,000 parents missing out on up to £2,000 free childcare.
In the latest episode of his ITV Money Show, the consumer expert shared three scenarios where you might be in line for help without realising.
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One is tax-free childcare, a government scheme where households earning and working the equivalent of 16 or more hours a week on the National Minimum Wage can apply.
Under the scheme, the government adds 20p for every 80p you add into your tax-free childcare account.
You can get up to £2,000 per year for each of your children to help with the cost of childcare.
If your child is disabled, you can get up to £4,000 a year.
You can apply on the government’s website by signing up for a childcare account.
Mr Lewis said: “There are 800,000 people missing out on thousands of pounds of childcare help.
“When I talk about childcare, I’m talking Ofsted-regulated or the equivalent to Ofsted in other UK nations.
“Childminders and nurseries and after school clubs and holiday clubs.
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“Many people don’t think they count, they do count.”
Mr Lewis also explained two other scenarios where you might be in line for help.
The first is if your child is aged three or four and you live in England.
In this instance, you could be due 15 to 30 hours free childcare a week.
The childcare must be with an approved childcare provider, such as a registered childminder, nanny or home care worker.
It stops once your child starts reception at school, or reaches compulsory school age.
You can apply for the help on the government’s website online or through your local council.
If you don’t know who you local council is you can use the government’s locator tool found on its website.
It’s worth noting there are different schemes in Scotland, Wales and Northern Ireland.
The second scenario is if you are due Universal Credit while paying for childcare.
Mr Lewis said if you pay for childcare and your income is less than £40,000 then you should check if you are eligible for help.
He also recommended using an online benefits calculator.
Meanwhile, Mr Lewis said if you are already on Universal Credit and in work, you could be due up to 85% back for the cost of childcare.
If you are on tax credits, you could be due up to 70% back for the cost of childcare.
But certain conditions apply to getting help in both scenarios, including how much income you earn and how much you already pay for childcare.
How else can I cut childcare costs?
The joy you get from having a child can sometimes be tested by the cost of childcare.
But there are some ways you can cut costs, beyond government schemes.
Certain organisations, such as the YMCA and local church groups, sometimes run after school clubs for free.
You should always check if there are any eligibility requirements by speaking to the organisation directly though.
In some cases, the services are intended for those who can’t pick their children up from school due to work commitments.
Meanwhile, a parenting expert previously revealed six ways to cut childcare costs over the school holidays.
This includes using support networks through ante-natal and post-natal classes, getting creative with ways to keep your kids occupied and taking up help from family members.
Plus, your workplace might run a subsidised nursery that’s worth looking into.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
