Tax-Free Childcare: who gets the top-up
Lesson 12 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
The minimum wage for someone aged 21 or over is £12.71 an hour. What's 16 hours a week at that rate (the weekly amount Tax-Free Childcare checks against)?
A parent pays £6,000 a year into their Tax-Free Childcare account for one child. How much does the government add? (£2 for every £8, capped at £2,000.)
A working student parent in England could get Tax-Free Childcare OR the Childcare Grant for their nursery bill. What's the sensible move?
Quick facts
- Single parent, 24, working 20 hours a week at £12.71 an hour → Likely to qualify. That's above 16 hours at the minimum wage.
- Couple: one works full time, the other is a full-time student with no job → Not likely. In a couple, both usually need to meet the earnings test (with some exceptions, such as if a partner gets certain disability or carer benefits).
- Single parent who already gets the childcare part of Universal Credit → Not likely. You can't use Tax-Free Childcare at the same time as Universal Credit. Compare which gives you more.
- Couple, both working part time at 18 hours a week on the minimum wage → Likely to qualify. Both are above 16 hours at the minimum wage.