How you can claim up to £20K a year to help with kids during summer holidays

Scottish Sun

26-07-2025

Do you know the Government will pay £2 for every £8 you spend on childcare
HOLIDAY HELP How you can claim up to £20K a year to help with kids during summer holidays
HAVING kids is expensive – and the financial pain only gets harder in the summer holidays.
Summer clubs cost an average £1,075 for the six-week break, according to Coram's Holiday Childcare Report, so it's vital you claim all available support.
Anna Stevenson, benefits specialist at Turn2Us, says: 'There are a lot of schemes to navigate and often people don't know where to start, but there is help there when you know where to look.'
Mel Hunter considers what help you can apply for — and it's worth up to £20,247 a year.
FREE CHILDCARE PLACES - up to £7,500 a year
ALL families in England are entitled to 15 hours' free childcare a week for three and four-year-olds.
Working families can also access some free childcare hours from when their children are nine months old.
From September, eligible parents will be able to get 30 hours' free childcare a week from nine months until school age — but you need to apply by August 31.
Wales, Scotland and Northern Ireland have alternative schemes, so it's worth checking what applies for you.
HOLIDAY ACTIVITY FUND - £720
THE Holiday Activities and Food (HAF) Programme gives children from lower income families access to holiday activities, including a free meal.
It is mainly for primary school children who receive free school meals.
Three key benefits that YOU could be missing out on, and one even gives you a free TV Licence
However, some councils keep places for other children considered in need.
Anna says: 'Schemes like this, which are administered by the local authority, can go under the radar.'
TAX-FREE CHILDCARE - up to £4,000 a year
THE Government will pay £2 for every £8 you spend on childcare, capped at £2,000 per year per child (or £4,000 for a child with a disability).
But around 825,000 of the 1.3million families who are eligible do not claim it.
Anna says: 'People don't always realise that they can get help covering the cost of childcare once their kids are out of nursery, when they may be using after-school or holiday clubs.'
CHILD BENEFIT - £1,355 a year
THIS is paid to anyone with a child under 16, or under 20 if they are still in education.
It is worth £1,354.60 per year for a family with one child and £2,251.60 per year for a family with two.
It seems a no-brainer, but around £1.6billion in child benefit goes unclaimed each year.
With child benefit, there is no cap so you can claim for as many children as you have.
The level at which you are entitled to the full amount changed last year.
Now you can get it if no one in your household earns more than £60,000, up from £50,000.
If you earn between £60,000 and £80,000, you are entitled to some of it.
If you earn more than £80,000, you are not entitled to any.
It is still worth filling in the claim form, even if you do not want to get payments, to get National Insurance credits which count towards the state pension.
UNIVERSAL CREDIT - £5,772 a year
UNIVERSAL credit is the main benefit that can be claimed by families on a lower income, but the 1.4million households that don't claim could be missing out on an average of £5,772.
You cannot get universal credit if you or a partner you live with have more than £16,000 in savings.
But you may still be able to get it if you work.
Mandy Jackson, a rights adviser with the charity Working Families, says: 'Anyone with a child should check if they are eligible.'
SURE START MATERNITY GRANT - £500
THIS is a one-off payment of £500 to help with the costs of having a newborn in England, Wales and Northern Ireland.
You can apply if you have no other children under 16 and you or your partner get certain benefits.
If you live in Scotland, you can apply for a Best Start grant, worth up to £767.50.
Designed to support families with young kids, it comes in three payments.
FREE BREAKFAST CLUBS - up to £450 a year
FREE breakfast clubs are being rolled out in primary schools across England.
These give kids an extra 30-minute session before school where they get a free breakfast.
If you are eligible for these you may be able to get help from your local authority during the summer holidays.
Check to find out.
My nursery costs are cut by £1,440
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Sam Kennedy Christian is a coach who helps parents juggle work and childcare
Credit: Suppleid
MUM-of-two Sam Kennedy Christian is a coach who helps parents juggle work and childcare.
Sam, 39, uses the tax-free childcare scheme and finds it very helpful.
She explains: 'I started using it when [my daughter] Rose, who's now seven, started at nursery – and over the years it has saved us a fortune.'
Currently, it cuts nursery fees for her son James, two, to £480 a month instead of £600 – saving £1,440 a year.
The family has been getting 15 hours' free childcare for James each week, but that will rise to 30 hours in September.
That will cut their bill by a further £240 a month.
Sam, from Herne Bay, Kent, says: 'It's a lot to get your head around, but it's so worth it.'
It can also be a godsend for clubs in the school holidays for Rose, Sam adds.
With the average cost around £30 a day where Sam lives, she ends up paying £24 herself, with the rest covered by the govern-ment payment.
Sam says: 'Saving £6 a day is very helpful. Over the summer, it will save us £60.'
PENSIONS ARE TAX TARGET
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Pensions will become subject to Inheritance Tax from April 6, 2027
Credit: Getty
GRIEVING families will soon find the process of sorting out a loved one's finances much harder following a huge change to Inheritance Tax.
The government has confirmed that pensions will become subject to Inheritance Tax from April 6, 2027.
Currently, money left in your pension after you pass away can be passed on to a loved one without any need for them to pay Inheritance Tax.
The Inheritance Tax rate is 40 per cent, and is charged on the estate – the property, possessions and money, of someone who has died – if it is worth more than £325,000.
A loophole means many wealthy pensioners are using pensions as a way to pass down most of their money because they are so tax-efficient.
The changes mean that this loophole will close – but experts have warned that it will pile pressure on grieving families.
Inheritance Tax needs to be paid within six months, and usually before you can apply for probate.
But tracking down pensions takes time, delaying the process of applying for probate.
Probate is the legal process of dealing with a person's death, and it can take months to get it granted.
Former pensions minister Steve Webb said: 'Life is tough enough when you have just lost a loved one without having extra layers of bureaucracy on top.
'It is hard to see how these changes will be good news for bereaved families.'
ADELE COOKE
STARLING ACCOUNT UPSET
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Starling bank will no longer let its users open a second current account
Credit: Reuters
ONLINE bank Starling has shaken up its current accounts, causing a big stir among customers who are desperate for the change to be reversed.
The bank, which has more than 4.6million UK customers, will no longer let its users open a second current account.
Starling previously let customers open an extra everyday bank account, free of charge.
Savers raved about the perk because it was a great way for them to manage their money.
But the digital bank has told The Sun it has temporarily stopped allowing customers to open additional accounts while it 'improves our account offering'.
It quietly suspended additional accounts last year, and clients have been calling on the bank to bring back the feature.
One customer posted to X this week: '@StarlingBank when will additional accounts be back? I had one and would like to enable it again.'
Another posted in January asking: 'Can I create a second personal account in @StarlingBank?'
One customer said on Reddit: 'I'm sure it used to be a thing when I first started with Starling, but now I get 'you've reached your personal account limit' with one account, and 'you're not currently able to apply for this account' when I go to open a Personal Additional.'
Starling said: 'Customers are still able to apply for a joint account, provided both are Starling customers.
'Joint accounts are limited to one per customer.'
BLATHNAID CORLESS