Help with childcare costs
The cost of childcare can seem expensive, but there is help
available that you may be entitled to such as:
- Tax Credits Childcare vouchers
- Free early education (3 and 4 year olds)
- New Deal
- Care to Learn
- Learner Support Funds
- Parents Learning Allowance and the Childcare Grant
Tax Credit
Don’t miss out, make sure you apply for Tax Credits! You can
check
online to see if you qualify .
Child Tax Credit
Child Tax Credit supports families with children (this can
include children until their 16th birthday and young persons aged
from 16 but under 20 years old who are in full time education). You
can claim whether or not you are working.
The amount you get is based on your income. All families with at
least one child and a household income of up to £41,300 may get an
award of tax credits. You may still be entitled to Child Tax Credit
if your household income is higher than this and you are claiming
for two or more children, your child has a disability or you are
claiming childcare costs.
Working Tax Credit
This payment is available for people who work at least 16 hours
per week (whether employed or self-employed) and who are on a low
income. The payment can include help towards the costs of childcare
(see below) and there is extra help for disabled people and those
working more than 30 hours per week.
Childcare Element of Working Tax Credit
You may be able to get more Working Tax Credit to help with the
costs of registered childcare. This is the childcare element which
can help with up to 70% of your childcare costs up to a maximum of
£175 a week for one child and £300 a week for two or more
children.
The amount you receive will depend on your income and will be
paid directly to the main carer. To be eligible, lone parents must
work 16 hours per week or more and a couple must both work 16 hours
per week or more (some exemptions apply).
For more information about Tax Credits call the Tax Credits
Helpline on 0845 300 3900.
Childcare Vouchers
Some employers run a childcare voucher scheme. This works by
replacing part of your salary with vouchers which you then use to
pay for the cost of registered childcare. The amount per week of
any voucher you receive is exempt from tax and national insurance
contributions. Your partner can also take advantage of childcare
vouchers if their employer runs a scheme. For more information
speak to your employer.
The amount which can be sacrificed per week depends on what tax
band your fall in:
| Tax band |
Max per week |
Saving |
| Basic (20%) Taxpayer |
£55/week vouchers |
Max annual gain £933 |
| Higher (40%) Taxpayer |
£28/week voucher |
Max annual gain £623 |
| Top (50%) Taxpayer |
£22/week voucher |
Max annual gain £606
|
Parents need to check with their childcare provider to see if they
accept vouchers as they are not obliged to.
Some employers also run workplace nurseries or offer direct
childcare subsidies, ask your HR department.
Free Early Education (2, 3 and 4 year olds)
All children in Rochdale are entitled to free early education
from the term after their third birthday. The Government funds
Rochdale Council to provide up to 15 hours of free early education
per week in settings (providers of early education) that have been
inspected by Ofsted. Sessions are divided into terms and the length
of the term will vary. You do not contribute towards this minimum
entitlement but may be charged fees for any services of childcare
additional to the free place.
Read
more about the early years grant (670kb pdf).
New Deal
New Deal programmes can help unemployed people, particularly
those who have been unemployed for a long time and people with
disabilities, find work.
If you are registered on Job Centre Plus New Deal programmes you
may be entitled to help with childcare costs to support you back
into work. For more information call 0845 606 0234 and you will be
directed to a local adviser.
Care to Learn
If you are under 20 and a parent or carer undertaking learning
or training, you may be entitled to receive up to £160 per week to
pay for registered childcare and travel costs. For more information
call the Learner Support helpline on 0800 121 8989.
Learner Support Fund
You may be eligible for help towards childcare costs through
your college or school. For advice speak to student support
services or your tutor.
Students in Higher Education
If you're a full-time higher education student with dependent
children, you may be able to get extra financial help. A Childcare
Grant is available to help with childcare costs, and the Parents'
Learning Allowance with your learning costs. For more information
telephone the Student Finance helpline on 0845 300 50 90 or visit
Directgov.