A government scheme for working parents to help reduce childcare costs for children aged 0-11
You can get up to £2000 (or £4000 if your child is disabled) a year until your child is 11
You can apply if you and your partner individually each:
Have an adjusted net income (ANI) less that £100k
Earn more than an average of £184 per week
You can use it to pay for approved childcare, for example:
Childminders, nurseries and nannies
After school clubs and play schemes
Your childcare provider must be signed up to the scheme so check with them keep this in mind when applying for childcare
If your child is disabled:
You can use the extra Tax-Free Childcare money to:
Help pay for extra hours of childcare
Help pay your childcare provider so they can get specialist equipment for your child such as mobility aids
A step by step guide can be found here
Step 1: set up a tax-free childcare account here
Step 2: Put money into account
For every £8 you pay into an online account, the government will add an extra £2 (20% top up), up to £2,000 per child per year, £4,000 if the child is disabled.
Step 3: Pay your childcare provider from your “tax free childcare” account
Step 4: You must reconfirm your details every 3 months to continue receiving the government top up
You can apply:
At the end of your parental leave, within 31 days of the date you are returning to work
Once you have returned to work
A government scheme to help support costs of childcare for working families
This website takes you through everything you need to know!
There are 2 types of free childcare available: universal (available to everyone) and extended (means tested)
Universal entitlement (available to all families in England, there is no eligibility requirement)
15 hours of free childcare or early education for 38 weeks for all 3-4 year olds
Contact your childcare provider and they will apply and claim the funding on your behalf
You can start receiving this from the January, April, or September after your child's third birthday
Extended entitlement
Up to 15 hours free childcare over 38 weeks of the year for children aged 9 months to 4 years old. Therefore:
15 hours from 9 months – 2 years old
30 hours from 3 – 4 years old (when combined with universal entitlement)
Coming soon – from Sept 2025
Up to 30 hours free childcare for eligible working families in England with a child from 9 months old up to school age
You are an “eligible working family” if you and your partner each individually:
Have an adjusted net income (ANI) less that £100k
Earn more than an average of £184 per week
Full criteria can be found here
Extra bits:
Your childcare provider needs to have signed up to provide the free government hours
Check with your provider whether they are part of the scheme and if so, how they offer it
Some providers will allow you to ‘stretch’ the hours over 52 weeks, using fewer hours per week
Can be used flexibly with one or more childcare providers
Child Benefits are a tax-free payment from the government to help with the costs of raising a child
Click here to find out more and here to claim for child benefits (takes 5-10 mins to fill out application online)
From 48 hours after you’ve registered the birth of your child, or once a child comes to live with you.
Can be backdated 3 months
Every family can apply for child benefits however the amount you receive is based on your income.
Click here to see how much you may be eligible for
->> Remember to take into account reduced earnings during parental leave
The thresholds of earnings are based on the adjusted net income (ANI) [link] of the highest earner
Adjusted net income (ANI) = the total taxable income before any Personal Allowances and less certain tax reliefs
details of what this means and how to calculate it can be found here
You should work out the ANI of the highest earner between you and your partner
If you are in the NHS pension scheme you do not take this off your annual income, as it is deducted before any tax is taken
The exact ANI is not needed to apply
You can work out the exact amount following the end of the tax year.
Then, if applicable, pay the High Income Charge via a Self Assessment tax return then
https://www.gov.uk/guidance/adjusted-net-income#how-to-work-out-your-adjusted-net-income
If the ANI of highest earner is <£60,000, you will receive full child benefit payments with no charge
Eldest or only child - £25.60 per week
Additional children - £16.95 per week
If the ANI of highest earner is >£60,000 you will have to pay the High Income Benefit Charge
£60,000 - £80,000 you will be charged some of what you make through Child Benefit Payments.
>£80,000: you’ll be charged the same amount as you make through Child Benefit payments so will end up with no extra money from Child Benefit.
To pay the charge you must fill in a Self Assessment tax return each tax year.
If you want these benefits but don’t want the faff of doing a self assessment then you can still apply for child benefits but opt out of the payments.
** It may still be worth applying for child benefits even if your income means you will get no money from the government, as there are some other associated benefits**
Protect your State Pension (you’ll get National Insurance credits until your child turns 12)
Transfer NI credits to partner or someone else in your direct family who looks after your child (eg sibling, grandparent)
Your child gets their National Insurance number automatically at 16 if you apply for child benefits
A regular payment from the government that you receive once you reach a certain age and have paid enough National Insurance (NI) contributions
It is in addition to NHS pension / any other private pension you may have
You can start receiving state pension when you reach the state pension age - currently 66 for both men and women
The amount you receive depends on your NI record
You need a minimum of ten years' contributions or credits to get any State Pension, and at least 35 years on your record to get the full amount
In 2024-25, the full rate of the new state pension is £221.20 per week
If you’re working and getting Child Benefit – you’re probably building up more National Insurance credits than you need, and it may be that someone else may benefit from them.
You have the option to transfer NI credits to:
Your partner if they’re not working or are on a low income and not paying National Insurance contributions
Grandparents or other eligible family members who care for your child / children
You can make transfer claims on an annual basis after the end of each tax year.
https://www.gov.uk/guidance/apply-for-specified-adult-childcare-credits