6 ways to get help with childcare before the big changes in April
WORKING parents struggling with high childcare costs are missing out on vital support.
It comes after Chancellor Jeremy Hunt this week increased the income level at which families can receive full child benefits.
It gives more parents money for childcare.
But there are many more ways to lighten the load.
Laura Purkess and Lana Clements explain how you can get all the help you need. . .
CHILD BENEFITS
HUNDREDS of thousands of mothers and fathers will be saved from an ‘unfair’ tax levy on their child benefits, the government confirmed this week.
The benefit is currently £24 per week for the eldest child, £15.90 per week for additional children, and will increase next month.
Under current rules, parents earning more than £50,000 must pay back one per cent of child benefit for every £100 of income they earn above that amount, on a sliding scale up to an income of £60,000.
The bill corresponds to the amount of child benefit they receive, effectively negating it.
But from April 6 this year, the lower limit will increase to £60,000 and the upper limit to £80,000.
Sarah Coles of financial services firm Hargreaves Lansdown said: ‘Parenting is becoming increasingly rewarding as half a million higher-income parents will lose less child benefit from April 6 – and 170,000 parents will have their child benefit recovered.
“And next tax year, child benefit will rise to £25.60 for the first child, and £16.95 for a second or subsequent child. That can really make a difference.”
UP TO 30 HOURS OF FREE CHILD CARE
THE number of hours that working parents can claim depends on the age of their child.
If the child is three or four years old, you can get up to 30 hours of free childcare.
If your child is two, you can get 15 hours next month.
And from September, parents of children aged nine months to three years can claim 15 hours.
To qualify, you must earn at least the equivalent of the national minimum wage for 16 hours per week.
CHILD CARE ON UNIVERSAL CREDIT
PARENTS who receive Universal Credit and are in paid employment can get up to 85 per cent of their childcare costs reimbursed, up to £951 per month for one child and £1,630 per month for two or more children.
It doesn’t matter how many hours you work.
If you live with a partner, you must both work to qualify.
Normally you have to pay for childcare yourself and reclaim the costs, but if this is difficult, you can get help through the Flexible Support Fund.
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TAX FREE CHILD CARE
PARENTS will get an extra £2 from the government for every £8 paid into their tax-free childcare account, up to £2,000 per child per year.
For disabled children the limit is £4,000 per year.
Childcare costs, childminders and even summer holiday camps can be paid for through tax-free accounts.
According to the latest HMRC data, almost 500,000 families were using tax-free childcare for their children in November 2023.
But in 2021, the government estimated that 1.3 million families were eligible – meaning almost one in two of those who could claim would miss out on this lucrative benefit.
GRANDPARENTS
THEY can be a lifesaver when it comes to childcare – and can get a pension increase to claim this benefit.
Parents who leave work to care for children under 12 will automatically receive parent credits, which will contribute to their National Insurance (NI) record.
Please note: you must have accrued NI for at least 35 years to be entitled to the full new AOW pension.
But if grandparents care for the children while the parents go to work, they can transfer this credit.
This means that grandparents with a gap in their NI record can increase their state pension income.
See gov.uk/guidance/apply-for-specified-adult-childcare-credits for more information.
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FLEXIBLE WORKING
Job sharing, compressed hours, and customized start and end times are some of the ways employers can help parents manage childcare needs.
From next month, all employees will have the right to request flexible working from the moment they start a new job.
Under the old rules, employees had to wait 26 weeks.
From April 6, you can also submit two formal requests within a twelve-month period.
Your employer must weigh the pros and cons of a request and also meet with you to discuss the proposal.
‘Childcare allows me to work and also take care of my son’
Mother-of-one Kate Jenkins decided to retrain as a childminder to save on childcare costs.
The former environmental consultant, who lives in Salisbury with her partner Jason, 32, and son Jayden, 17 months, decided to change careers while on maternity leave last year.
She now charges £7 an hour to care for two other children under the age of four at any time.
Kate, 31, says: “I loved my old job but the exorbitant costs of childcare meant it just wasn’t feasible to continue working.
“I have retrained as a childminder at Tiney and this allows me to earn an income by caring for Jayden myself, instead of working and barely having anything left after the childcare costs.”