Warning for 800k parents missing out on benefit worth £2,000 a year – it could be a lifesaver for the school holidays

The Sun

6 days ago

A WARNING has been issued for 800,000 parents who risk missing out on a benefit worth £2,000 a year.
Tax Free Childcare is a benefit which helps working families with the cost of paying for nursery or after school clubs.
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Children up to the age of 12 are eligible, and this extends up to 16 if they live with a disability.
To qualify, you or your partner (if you have one) need to be either employed or self-employed.
In some instances, if you are not currently working you may still be able to claim if you are on incapacity benefit or severe disablement allowance.
If you are eligible for the benefit, you will set up an online childcare account for your child.
For every £8 you pay into this account, the government will pay in £2 to use to pay your provider.
So it is important to remember that you do not get the money as a lump sum.
Instead, parents get up to £500 each month paid towards the childcare your child is attending.
It is worth noting that you only get the top-up when you pay in.
So you must pay the £2,000 every three months (a quarter of a year) to receive the full £500.
And the allowance does not roll over, so if you claim £300 in the first quarter, you can still only get £500 in the next quarter — even if you pay in more.
I'm a mum of two and get a £1.7k Universal Credit payday each month people hate me as they work 40 hours a week for the same
This is a little-known benefit, with MoneySavingExpert warning that 800,000 parents are unaware the scheme exists.
You must also make sure that the childcare your little one attends accepts Tax-Free Childcare.
To avoid disappointments, check with your provider to see if they're signed up.
For more information on setting up an account, you can visit the government website.
Parents on Universal Credit with one child under 17 can claim up to £1,015 a month.
Meanwhile, parents of two or more children or more eligible for up to £1,739 to help pay for childcare costs - up from £950 and £1,630 respectively.
CHANGES TO TAX FREE CHILD CARE
From September 2025, children aged nine months to two years old will get 30 hours per week of free childcare.
To qualify, the vast majority of parents will need to earn more than £9,518 but less than £100,000 a year.
Your two-year-old can also get free childcare if you live in England and get any of the following benefits:
Income support
Income-based jobseeker's allowance (JSA)
Income-related employment and support allowance (ESA)
Universal Credit and your household income is £15,400 a year or less after tax, not including benefit payments
The guaranteed element of pension credit
Child tax credit, working tax credit (or both), and your household income is £16,190 a year or less before tax
WHAT OTHER HELP IS AVAILABLE?
You get child benefit if you're responsible for bringing up a child who is under 16 or under 20 if they are in approved education or training
The payment is used to help parents cover the costs of childcare.
It is paid at two weekly rates - £26.05 for your eldest or only child and £17.25 for any additional children.
Payments are usually made every four weeks, on a Monday or Tuesday, but sometimes are made weekly.
If you are claiming child benefit for a child under 12, you also receive National Insurance (NI) credits.
NICs count towards your State Pension so claiming the benefit can be useful if you are missing any.
Parents can also get help with free food vouchers through the government's Household Support Fund.
What help is available for parents?
CHILDCARE can be a costly business. Here is how you can get help.
30 hours free childcare - Parents of three and four-year-olds can apply for 30 hours free childcare a week.
To qualify you must usually work at least 16 hours a week at the national living or minimum wage and earn less than £100,000 a year.
Tax credits - For children under 20, some families can get help with childcare costs.
Childcare vouchers - If your employer offers childcare vouchers you can get up to £55 a week in tax and national insurance savings.
You pay for your childcare before your tax contributions are taken out.
This scheme is open to new joiners until October 4, 2018, when it is planned that tax-free childcare will replace the vouchers.
Tax-free childcare - Available to working families and the self-employed, for every £8 you put in the government will add an extra £2.