Reduce the cost of childcare

There are lots of different ways of reducing the cost of childcare. There are options for toddlers, teens and for parents who are studying.

The government’s Childcare Choices website provides further information on the different financial support available, such as the ‘is it for me?' feature, which can help guide families to view which options are available to them.

Free and impartial information on the different options for parents and carers is provided by York Family Information Service.

Families can also request a list of childcare providers in their area. See more information about how the Family Information Service can help you find childcare services.

Families can also access further information for help with childcare and other costs on the government’s Help for Households page.

Reducing the cost of childcare for children from 9 months old

From September 2024 working families may be eligible to receive up to 15 hours funded childcare per week (38 weeks per year), the term after their child turns 9 months old.

The application process is not currently open, to find out more information visit the Childcare Choices website.

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Reducing the cost of childcare for 2-year-olds

2-year-olds from families receiving additional government support

If your family is receiving certain benefits your 2-year-old may be eligible to receive up to 15 hours funded childcare per week (38 weeks per year), the term after their child turns 2.

To find out if you're eligible and to apply, see information for parents about funded childcare for 2-year-olds.

2-year-olds from families with no recourse to public funds

2-year-olds from families with no recourse to public funds may be eligible to receive up to 15 hours funded childcare per week (38 weeks per year), the term after their child turns 2.

To find out if you're eligible and to apply, see information for parents about funded childcare for 2-year-olds.

2-year-olds of working families

From April 2024, working families may be eligible to receive up to 15 hours funded childcare per week (38 weeks per year), the term after their child turns 2.

This will increase to 30 hours per week from September 2025.

Visit Childcare Choices to find out if you are eligible and to apply.

Other eligible 2-year-olds

Your family may be eligible to receive up to 15 hours funded childcare per week (38 weeks per year), the term after their child turns 2 if they:

are looked after by a local authority
have an Education, Health and Care Plan (EHCP)
get Disability Living Allowance
have left care under an adoption order, special guardianship order or a child arrangements order

To find out if you're eligible and to apply, see information for parents about funded childcare for 2-year-olds.

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Reducing the cost of childcare for 3- and 4-year-olds

All families are eligible to receive up to 15 hours funded childcare per week (38 weeks per year), the term after their child turns 3. This is a national offer for all families, therefore you do not need to apply.

Working families may be eligible to receive up to 30 hours funded childcare per week (38 weeks per year), the term after their child turns 3.

Visit Childcare Choices for further information and to find out if you are eligible and to apply.

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Tax free childcare, tax credits and support whilst you study

To receive support with childcare costs, childcare must be at:

an Ofsted registered provider
at a school

Tax free childcare

Tax free childcare is available for:

working families, including the self-employed, in the UK
those earning under £100k and at least £139 per week (equal to 16 hours at the National Minimum or Living Wage) each
those who aren't receiving Tax Credits, Universal Credit or childcare vouchers
those with children aged 0 to 11 (or 0 to 16 if disabled)
every £8 you pay into an online account, the government will add an extra £2, up to £2,000 per child per year

Working Tax Credits for childcare

Working Tax credits for childcare are for:

working families, in the UK
those with children under 16 (or under 17 if disabled); support received up to 1 September following the child's 16th birthday
70% of childcare costs, up to a cap

If you cannot make a new claim for Tax Credits, you may be able to apply for Universal Credit instead.

Universal Credit for childcare

Universal Credit for childcare is available for:

working families claiming Universal Credit, in England, Scotland, Northern Ireland and Wales
no minimum hours required
those with children under 17; support received up to 1 September following the child's 16th birthday

You may be able to claim up to 85% of childcare costs if you're eligible for Universal Credit and meet some additional conditions. There is a cap on the amount for 1 and 2 children.

If you receive Universal Credit but are unemployed you may still be able to receive some support if you require childcare whilst accessing a short-term course to help you find work via the Flexible Support Fund. Speak to your Work Coach for further information.

If you've accepted a job, you can claim childcare costs for the month before you start work. Talk to your Work Coach about the job offer and support options as soon as possible.

Support with childcare whilst you study

You could receive:

weekly payments from Care to Learn if you’re at school or 6th form college
help through your college if you’re in further education
a weekly grant if you’re in full-time higher education

Tax Credits, Child Benefit and Guardian's allowance

Find guidance and information on other ways to receive financial support with childcare and you can use the tax credits calculator to work out an estimate on how much tax credits you could receive.

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Other options for support

There are other options available for support to reduce the cost of childcare.

Shared Parental Leave

You and your partner may be able to get Shared Parental Leave (SPL) and Statutory Shared Parental Pay (ShPP) if you’re having a baby or adopting a child. You can share up to 50 weeks of leave and up to 37 weeks of pay between you.

You need to share the pay and leave in the first year after your child is born or placed with your family. You can use SPL to take leave in blocks separated by periods of work or take it all in one go. You can also choose to be off work together or to stagger the leave and pay.

Flexible working

There is no absolute right to work part time. However, you have the right to ask to work flexibly in your current job, and your employer has a duty to consider your request seriously, if you're:

an employee who has worked for your employer for 26 weeks and has a child under 17 (or a disabled child under 18 who gets Disability Living Allowance)
an employee who has worked for your employer for 26 weeks and cares for a disabled adult

The right to request is available to both men and women, and covers the hours an employee works, the times they are required to work and the place of work (for example, home or a workplace). It's important to understand that a change granted under the right to request is permanent. If you want a temporary change only this must be specifically negotiated with your employer.

Even if you do not have the right to request (for example, you have not worked for your employer for long enough), you can still ask to change your pattern of work, and sex discrimination law may apply if you're turned down.

For more information about flexible working contact York Family Information Service on telephone: 01904 554444. You can also contact Working Families on telephone: 0800 013 0313 for advice on your rights at work.

Family and Childcare Trust

The Family and Childcare Trust is a national charity working for families to get high quality and affordable childcare. They have a fantastic website that has loads of information on all the different ways of reducing your childcare bill. Read their childcare guides.

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