Childcare Funding
Covering the Cost of Childcare
Navigating the expenses associated with childcare can pose challenges, particularly given the current economic conditions. The UK government provides various subsidised childcare initiatives aimed at easing the financial burden.
Explore the array of options at your disposal to identify how childcare funding can alleviate the financial strain on your family.
In March 2023, the government unveiled proposals to extend the availability of subsidized childcare hours, encompassing younger children. You could qualify for 15 hours of funding for your 2-year-old if you are employed and earning a minimum of 16 hours per week at either the national living wage or the minimum wage, as long as your annual income does not exceed £100,000.
For couples, these criteria apply individually to each partner. If one partner is not employed or if either earns over £100,000, eligibility for the funding is not met.
For additional information regarding the latest funding initiatives, sign up to the official government Childcare Choices website.
Tax-Free Childcare stands as a governmental initiative in the UK, strategically crafted to assist employed parents in managing childcare expenses.
For every 80p contributed by you or another party, the government will supplement it with an additional 20p. This enhancement mirrors the standard tax rate of 20%, thereby earning the scheme its distinctive name.
In England, two government-sponsored programs provide 15 hours of free early education and childcare for children aged two, three, and four:
- 15 hours of funded childcare specifically for eligible 2-year-olds.
- 15 hours of funded childcare available to all 3 and 4-year-olds.
There is also the opportunity to receive the provision of 30 hours of funded childcare to eligible families.
While all 3 and 4-year-olds in England currently receive 15 hours of weekly government-funded early education, those with parents living and working in England may qualify for an extended benefit of 30 hours of funded childcare, equating to a total of up to 1,140 hours per year.
