Tag: childcare costs

Hop to it – save on Easter childcare costs with Tax-Free Childcare

HM Revenue and Customs (HMRC) is reminding working families to save money on their childcare costs in time for the school holidays

With the Easter break just weeks away, families yet to sign up for Tax-Free Childcare could be missing out on annual savings of up to £2,000 per child, or £4,000 if their child is disabled.

Tax-Free Childcare can help pay for approved childcare for children aged 11 or under, or up to 16 if the child has a disability. Parents can receive up to £500 (or £1,000 if their child is disabled) every 3 months, which means for every £8 paid into their online account, they will automatically receive an additional £2 top up from the UK Government.

It takes just 20 minutes to apply online for a Tax-Free Childcare account and can be used to help pay for a child’s nursery, childminder, breakfast or after school club or holiday activity club.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Springtime is a good opportunity to take a fresh look at family finances.

“A quick check online and you can find out how Tax-Free Childcare can help cut the cost of your childcare bills. Every bit of financial support helps – I would urge families to ’hop to it’ and search ‘Tax-Free Childcare’ on GOV.UK to find out how you could be better off and open your account today.”

Once an account is opened, parents can deposit money immediately, so it is ready to be used whenever it is needed; and unused money in the account can be withdrawn at any time.  

Families could be eligible for Tax-Free Childcare if they:    

  • have a child or children aged 11 or under. They stop being eligible on 1 September after their 11th birthday. If their child has a disability, they may get up to £4,000 a year until 1 September 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 tax credits, Universal Credit or childcare vouchers     

A full list of the eligibility criteria is available on GOV.UK.

Families can learn more about the childcare offers available to them and what could fit their family by visiting Childcare Choices.  

The UK Government is offering help for households. Check GOV.UK to find out what cost of living support, including help with childcare costs, families could be eligible for.  

Crack your Easter childcare costs with tax-free top ups 

With the Easter school holidays nearly here, HM Revenue and Customs (HMRC) is reminding families in Scotland not to miss out on UK Government help to pay for childcare. 

Tax-Free Childcare can pay for any approved childcare for children aged 11 or under, or 16 if the child has a disability. More than 26,000 families in Scotland used the scheme in December 2022.

Working families, where each parent or carer earns up to £100,000 can use it, meaning for every £8 paid into an online account they will receive an additional £2 from the government. This means parents and carers can receive up to £500 every 3 months (£2,000 a year for each child), or £1,000 (£4,000 a year for each child) if their child is disabled.  

Whether children go to nursery, a childminder, attend breakfast, after school or holiday clubs, as well as out of school activities, Tax-Free Childcare could be used.

Opening a Tax-Free Childcare account is quick and easy and can be done at any time of the year. Families who have not yet signed up should check their eligibility and apply online today.

Victoria Atkins, Financial Secretary to The Treasury, said:  “Tax-Free Childcare provides extra help with childcare costs which could make all the difference to working families and make childcare expenses more manageable.

“I would urge families to go online today to find out how it can help you.”  

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:  “Childcare is so important for working families, especially during school holiday time. Tax-Free Childcare provides financial support when it’s needed the most.

“Search ‘Tax-Free Childcare’ on GOV.UK to find out how it could help you.”  

A Tax-Free Childcare account can be opened online in just 20 minutes. Money can be deposited at any time to be used straight away, or whenever it is needed.

Unused money in the account can be withdrawn at any time. Go to GOV.UK to register and get started.  

Families could be eligible for Tax-Free Childcare if they:    

·         have a child or children aged 11 or under. They stop being eligible on 1 September after their 11th birthday. If their child has a disability, they can receive support until 1 September 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 tax credits, Universal Credit or childcare vouchers .  

A full list of the eligibility criteria is available on GOV.UK.  

The UK Government is offering help for households. Check GOV.UK to find out what cost of living support, including help with childcare costs, families could be eligible for.  

Coram: Counting the cost of childcare

Holiday childcare prices jump by 5%, amid cost of living crisis, as parents working full time struggle to find the childcare they need

Families across Britain are bracing themselves for a difficult summer as a sharp rise in holiday childcare prices and patchy availability of places hits working parents, Coram Family and Childcare’s 17th annual Holiday Childcare Survey has revealed.

Coram’s report finds that, amid the soaring costs of living, holiday childcare costs have jumped by 5% since 2021. The average place at a holiday club now costs £148 a week – more than double what parents pay for an after-school club during term time.

Families will now find themselves almost £900 out of pocket for six weeks of holiday childcare for each school age child, nearly £500 more than they would pay for six weeks of term time childcare before and after school. Some 42% of local authorities across Britain have reported that the pandemic had caused an increase in prices.

The survey also found considerable regional variation in prices across Britain, with parents in inner London paying an average of £161 per week compared to £135 in the West Midlands, an 18% price difference. There are also huge price differences within the same area, with some holiday childcare places in inner London costing 92% more than the average, while others cost 44% less.

Alongside the financial strain, parents are struggling to find the childcare they need, with only 27% of English local authorities having enough holiday childcare available for parents in their area who work full time, down 6% on last year. Parents of disabled children face the most acute challenge with only 7% of local authorities having enough holiday childcare for these families, plunging from 16% in 2021.

Other notable gaps in England include holiday childcare for children whose parents work atypical hours and children living in rural areas, with only 10% and 15% of local authorities respectively reporting they have enough childcare availability for these groups.

Ellen Broomé, managing director of Coram Family and Childcare, said: “Families across Britain are reeling from record inflation and this steep rise in holiday childcare will push many further into financial distress.

“Many parents, particularly mothers, will have no choice but be locked out of work altogether or struggle to pay for basic necessities such as food or rent.

“Holiday childcare is key economic infrastructure. The lack of childcare places for working parents is a serious problem – not just for families but for the country’s economic output. Children have experienced such disruption throughout the pandemic, and holiday childcare offers them a safe and fun space to stay active and connect with their friends while also helping to tackle the summer learning loss.”

Coram Family and Childcare is calling on the UK, Scottish and Welsh Governments to:

  • Reform Universal Credit so it does not lock parents out of work – by increasing the maximum amount of childcare costs paid under Universal Credit and guaranteeing support for upfront childcare costs.
  • Increase support for Family Information Services to provide good quality holiday childcare information and broker access to local provision that meets families’ needs.
  • Expand provision of the Holiday Activities and Food programme to improve access to affordable, high quality childcare for all children who need it.
  • Support local authorities to ensure they have a comprehensive overview of the cost and availability of holiday childcare in their area to identify and plug gaps in provision.
Coram-Holiday-Childcare-Survey-2022Download

Thousands of families can receive help towards Easter childcare costs

HM Revenue and Customs (HMRC) is reminding working parents in Scotland to not miss out on the opportunity to get up to £2,000 a year to pay for regulated childcare, including holiday clubs and other out-of-school activities, during the Easter holidays. 

Tax-Free Childcare provides thousands of eligible working families with up to £500 every three months (or £1,000 if their child is disabled) towards the cost of holiday clubs, before and after-school clubs, childminders and nurseries, and other approved childcare schemes.

For every £8 deposited into a Tax-Free Childcare online account, families will receive an additional £2 in government top-up, and it is available for children aged up to 11, or 17 if the child has a disability.

More than 19,800 working families used the scheme in December 2021, in Scotland. Overall, HMRC paid out more than £34 million in top-up payments, which was shared between nearly 328,000 families across the UK.

With recent research estimating that around 1.3 million families could be taking up this government support, parents and carers can check their eligibility and register for Tax-Free Childcare via GOV.UK. 

This scheme can help working families including the self-employed and is one of many ways the UK Government is supporting households to reduce their costs and keep more of what they earn to help pay for other bills. 

Helen Whately, HM Treasury’s Exchequer Secretary to the Treasury, said: “There are lots of brilliant holiday clubs and childcare providers to help working parents during the Easter holidays, and Tax-Free Childcare is a great offer that can help cut the childcare bills. 

“I urge families across the UK to take advantage of this support and put extra pounds in their pocket – sign up now and save on your childcare costs.” 

By depositing money into their accounts, families can benefit from the 20% top-up and use the money to pay for childcare costs when they need it. Accounts can be opened at any time of the year and can be used straight away.

For example, if parents and carers have school-aged children and use holiday clubs during school holidays, they could deposit money into their accounts throughout the year. This means they could spread the cost of childcare while also benefitting from the 20% government top-up. Any unused money that is deposited can be simply withdrawn at any time.

Tax-Free Childcare is also available for pre-school aged children attending nurseries, childminders, or other childcare providers. Families with younger children will often have higher childcare costs than families with older children, so the tax-free savings can really make a difference.

Childcare providers can also sign up for a childcare provider account via GOV.UK to receive payments from parents and carers via the scheme.

HMRC: Don’t miss out on up to £2k towards childcare costs

Thousands of working families in Scotland could be missing out on an opportunity to get up to £2,000 a year to help with the cost of childcare, HM Revenue and Customs (HMRC) is reminding parents ahead of the February mid-term break.

Tax-Free Childcare – the 20% childcare top-up – provides eligible working families with up to £500 every three months (or £1,000 if their child is disabled) towards the cost of holiday clubs, before and after-school clubs, childminders and nurseries, and other accredited childcare schemes.

More than 18,500 working families used Tax-Free Childcare across Scotland in September 2021, receiving a share of £35 million in UK Government top-up payments towards their childcare costs – an increase of about 90,000 families compared to September 2020.

Tax-Free Childcare is available for children aged up to 11, or 17 if the child has a disability. For every £8 deposited into an account, families will receive an additional £2 in government top-up.

This scheme is one of many ways the UK Government is supporting households to raise their incomes and keep more of what they earn.

Parents and carers can check their eligibility and register for Tax-Free Childcare via GOV.UK.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “The 20% government top-up offers working families help to pay for childcare, whether it’s nursery bills, after school clubs or holiday clubs.

“Search ‘Tax-Free Childcare’ on GOV.UK to find out more.”

Helen Whately, Exchequer Secretary to the Treasury said: “Whether it’s for holiday clubs, breakfast clubs, or childminders and nurseries, Tax-Free Childcare is a great offer that gives working parents a helping hand with their childcare costs.

“This UK Government is committed to supporting working families which is why it’s fantastic that thousands more are saving money through the Tax-Free Childcare scheme. I urge as many parents as possible to take advantage of this support.”

By depositing money into their accounts, families can benefit from the 20% top-up and use the money to pay for childcare costs when they need it. Accounts can be opened at any time of the year and can be used straight away.

For example, if parents and carers have school-aged children and use holiday clubs during school holidays, they could deposit money into their accounts throughout the year. This means they could spread the cost of childcare while also benefitting from the 20% government top-up.

Tax-Free Childcare is also available for pre-school aged children attending nurseries, childminders, or other childcare providers. Families with younger children will often have higher childcare costs than families with older children, so the tax-free savings can really make a difference.

Childcare providers can also sign up for a childcare provider account via GOV.UK to receive payments from parents and carers via the scheme.

HMRC can help with childcare costs in Scotland as children head back to school

Families in Scotland may be eligible for Tax-Free Childcare to help pay for breakfast and after school clubs as children go back to school.

Families are eligible to save money on their childcare and benefit from a government top-up worth up to £2,000 every year, or up to £4,000 a year if a child is disabled. In June 2021, about 17,530 families in Scotland benefited from using Tax-Free Childcare, but thousands are missing out on this opportunity.

Tax-Free Childcare is available to eligible parents or carers who have children aged up to 11, or 17 if their child is disabled. For every £8 a parent or carer deposits into their account, they will receive a £2 top-up, up to the value of £500 every three months, or £1,000 if their child is disabled. Parents and carers can check their eligibility and register for Tax-Free Childcare via GOV.UK.

HMRC recognises that families’ personal circumstances have changed since March 2020 as more parents and carers are preparing to return to their workplaces. The 20% top-up is paid into the child’s Tax-Free Childcare account and is ready to use almost instantly, meaning parents and carers can use the money towards the cost of childminders, breakfast and after school clubs, and approved play schemes.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “As your children head back to school this autumn, don’t miss out on the opportunity to receive your 20% top-up to help pay for their childcare.

“It is quick and easy to sign-up, just search ‘tax-free childcare’ on GOV.UK.”

Tax-Free Childcare is also available for pre-school aged children attending nurseries, childminders or other accredited childcare providers. Parents and carers, who are returning to work after parental leave, can apply for a Tax-Free Childcare account for that child before they need to start using it. Families can start depositing money 31 days before they return to work, maximising the potential government top-up saving.

Childcare providers can also sign up for a childcare provider account via GOV.UK to receive payments from parents and carers via the scheme.

Scottish families face rising childcare costs

Scottish parents are paying 2% more for childcare for the under-twos than they were one year ago, according to the country’s most comprehensive annual survey of childcare costs, published today.

Coram Family and Childcare’s 20th annual Childcare Survey finds that parents in Scotland are now paying an average of £111.26 per week, or almost £5,800 per year, for a part-time nursery place.

Even where parents can afford childcare, some will struggle to find it.

In Scotland, though the majority of childcare categories have shown an increase in availability between 2019 and 2020, only 27% of local authorities have enough childcare for parents working full-time – significantly lower than in England (56%).

In September 2017 in England, free childcare was extended for three and four year olds with working parents to 30 hours per week during term time. Free childcare in Scotland will now also be extended to 1,140 hours per year (30 hours per week for 38 weeks per year) for all children, not just those with working parents.

The entitlement will be available from August 2020. Local authorities are broadly optimistic about this extension, with over two-thirds (69%) of local authorities expecting it to have a positive impact on the attainment gap between disadvantaged children and their peers.

Claire Harding, Head of Coram Family and Childcare, said: “Good childcare is essential: it enables parents to work and boosts children’s learning. But for far too many families in the UK, it just isn’t working.

“Recent government investment is welcome, but many families still face crippling costs, especially in the period from the end of parental leave to when a child turns three. There are seven different types of childcare support depending on families’ individual circumstances, and many parents find it difficult just to find out what’s available to them.

“Investing in childcare supports is good for us all because it helps parents to work now, and boosts children’s learning and skills for our future. We’re calling on Government to reform and simplify the childcare system so every parent is better off working after paying for childcare, and every child has access to childcare which supports their learning and development.”

The Childcare Survey 2020 sets out actions that Scottish, Welsh and UK governments can take to help parents find affordable childcare:

  • Reform Universal Credit so it doesn’t lock parents out of work: increasing the maximum amount of childcare costs paid under Universal Credit and moving to upfront payments for childcare
  • Regularly review the funding rate for free early years entitlements to make sure that they meet the cost of delivering high quality childcare
  • Double the early years pupil premium, to boost outcomes for the most disadvantaged children
  • Reallocate any underspend against the budget for Tax-Free Childcare to other parts of the childcare system – and focus this on the most disadvantaged children.

Scottish families face holiday childcare bill of over £700

New figures show that the average parents in Scotland now pay for one week of holiday childcare is £123 – more than double the price they pay for after-school clubs during term time. Continue reading Scottish families face holiday childcare bill of over £700