MARTIN Lewis has warned thousands of Brits are missing out on free help with childcare costs – and explained how you can cash in.
The money-saving expert said a whopping 800,000 people are eligible for tax-free childcare – but it’s “massively underclaimed”.
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Under the scheme parents can get up to £500 every three months – up to a maximum of £2,000 a year – for each of their children to help with the costs of childcare.
There is a criteria they must meet – like earning a certain amount of money over a three-month period.
Speaking on his Budget special this evening, Martin said: “(It’s) massively underclaimed – 800,000 of you who aren’t entitled to any of the other things are entitled to this.
“It’s for the employed and the self-employed.
“For every 80p you put in, the state adds 20p up to £2,000 a year.
“For children of a maximum age 11 – or 16 with disabilities who get £4,000 a 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.
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You should bear in mind that you can’t claim tax-free childcare if you receive working tax credit, child tax credit, Universal Credit, or childcare vouchers.
Your tax credits will stop immediately if you successfully apply for tax-free childcare. You will also have to cancel your Universal Credit and childcare vouchers.
Use the government’s calculator tool to work out which option will work best for you.
While tax-free childcare remains unchanged, there were seven major changes announced for childcare amid yesterday’s Budget.
During Martin’s ITV Budget special he revealed how Brits on Universal Credit can get free cash with specific savings account.
He explained why thousands across the country will spend more on energy bills from next month, too.
The expert then revealed an easy trick that could save you hundreds on your energy bill.
Yesterday Martin offered his verdict on the Budget – he spoke to tax, energy bills, pensions, and free cash.
He was speaking after the government revealed the price of a packet of cigarettes would rise to £14.39.
Elsewhere, Jeremy Hunt gave millions of workers a pension boost by scrapping the lifetime pension allowance (LTA) to tempt people to work longer.
The Energy Price Guarantee (EPG) cap will also continue at £2,500 for another three months.
It was meant to rise to £3,000 a year for households in April but Hunt scrapped those plans today.
This will save the average household around £160, the government said.
Meanwhile, it was also announced drivers won’t pay more for fuel as duty was frozen.
