Parents urged to check for £500 cash help as summer childcare costs rise to over £1,000
The average cost of summer childcare in Scotland is now £186 per week.
Families paying for childcare over the six-week summer holiday now face a bill of £1,076 per child on average - a rise of 4 per cent on last year, a report has found. Research by the Coram Family and Childcare charity suggests families in the UK pay on average £1,076 for six weeks at a holiday childcare club for a school-age child - £677 more than they would pay for six weeks in an after-school club during term time.
The research, based on surveys of local authorities in Scotland, England and Wales between April and June, suggests the average cost of a holiday childcare club has risen by 4 per cent in a year to £179 per week.
Wales has the highest weekly price at £210, followed by England at £178 and Scotland at £168. The report also found that the average cost of a childminder during the holidays is £234 per week in the UK.
Tax-free childcare help
Nearly 826,000 working families saved up to £2,000 per child with Tax-Free Childcare in the 2024 to 2025 tax year. The money helps families pay for their childcare, as part of the UK Government's Plan for Change to put more money in people's pockets.
HM Revenue and Customs (HMRC) figures also show that in March 2025, 36,095 families in Scotland used the scheme to save on their annual childcare bills, an increase of 4,925 families compared to the previous March.
HMRC is encouraging those yet to sign up for Tax-Free Childcare, to do it now and give their summer a financial boost.
Latest figures from HMRC show in March 2025, 579,560 families in the UK used the scheme to save on their annual childcare bills, an increase of 81,770 families compared to the previous March.
Working families who sign up to Tax-Free Childcare can boost their annual budget by up to £2,000 per child up to the age of 11 or up to £4,000 up to the age of 16 for a disabled child.
Parents can use the scheme to help towards the cost of approved childcare whether that's nursery for younger children, or for older children - wraparound or after school care clubs during term time or holiday clubs for the long summer holidays ahead.
Myrtle Lloyd, HMRC's Director General for Customer Services, said: 'Summer can be an expensive time if you have children. Whatever you're planning, Tax-Free Childcare can give your plans a welcome financial boost. Go to GOV.UK to start saving today.'
Tax-Free Childcare in a nutshell
For every £8 deposited in a Tax-Free Childcare account, the UK Government tops it by £2, which means parents can receive up to £500 (or £1,000 if their child is disabled) every three months towards paying for their childcare costs.
Once families have opened a Tax-Free Childcare account, they can deposit money and use it straight away or keep it in the account to use it whenever it's needed. Any unused money in the account can be withdrawn at any time.
HMRC said it takes just 20 minutes to apply online for a Tax-Free Childcare account.
Once an account is opened, parents can deposit money and use it straight away or keep it in the account to use it whenever it's needed. Any unused money in the account can be withdrawn at any time.
Eligibility for Tax-Free Childcare
Families could be eligible for Tax-Free Childcare if they:
Have a child or children aged 11 or under. They stop being eligible on September 1 after their 11th birthday. If their child has a disability, they may get up to £4,000 a year until September 1 after their 16th birthday
Earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average
Each earn no more than £100,000 per annum
Do not receive Universal Credit or childcare vouchers
A full list of the eligibility criteria is available on GOV.UK here.
Financial support for parents in Scotland
Social Security Scotland delivers five family payments which can help pay for extra school term expenses alongside everyday family costs like food, clothing and days out.
Scottish Child Payment is a weekly payment of £27.15 for eligible families with children up to the age of 16 - the payment is worth £108.60 every month and is only available north of the border.
Combined with Child Benefit payments from HMRC, parents could be due up to £212.20 each month in additional support. Child Benefit is a separate UK-wide payment worth £26.05 for the eldest or only child and is also paid every four weeks, amounting to £104.20.
The three Best Start Grant payments and Best Start Foods, also part of social security support, are designed to help families at key stages in their children's early years, including during pregnancy.
There is no cap on the number of children in one family who can receive these payments.
One-off payments for families
Best Start Grant Pregnancy and Baby Payment - one-off payment of up to £767.50 available after 24 weeks of pregnancy until a baby turns 6 months.
Best Start Grant Early Learning Payment - one-off payment of £319.80 to help with the costs of early learning when a child is between two, and three years and six months.
Best Start Grant School Age Payment - one-off payment of £319.80 to help with the costs of starting school available between June 1 and the last day in February in the year when a child is first old enough to start primary one.
Best Start Foods - up to £43.20 every four weeks from pregnancy up to when a child turns three to help buy healthy food, milk and first infant formula.
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