Childcare: the help nobody tells you about
Lesson 10 of 14 in our free Relationships, Family & Money guide: a 5-minute money game with the key points below.
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Questions you'll answer
Tax-Free Childcare: the government adds £2 for every £8 you pay in. If a parent pays in £4,000 over a year, how much does the government add?
On Universal Credit, you can get back up to 85% of eligible childcare costs (up to a cap). If one child's childcare costs £800 a month, how much could UC cover?
Which is true about combining childcare schemes?
Quick facts
- Full-time undergrad in England with a 2-year-old → Childcare Grant. Student Finance England's Childcare Grant covers 85% of costs, up to £199.62 a week for one child.
- Working parent on a low income, already claiming Universal Credit → UC childcare element. UC can repay up to 85% of childcare costs. You can't use it at the same time as Tax-Free Childcare.
- Two working parents, each earning a salary, not on UC → Tax-Free Childcare. Tax-Free Childcare suits working parents who aren't claiming UC.