Government help with nursery fees
Every child is entitled to government help with childcare costs, under the government tax free childcare scheme. If your child is 2 or over, they may be eligible for 15 or 30 hours of free childcare per week for 38 weeks of the year.
On this page we’ll explain how to get government help with nursery fees, who’s eligible for free childcare, and what you need to do to claim your 15 or 30 hours childcare funding.
Free childcare hours
Every child is entitled to free childcare hours the term after their 3rd birthday, and some can claim 2 year funding the term after their 2nd birthday. This government help can make a big difference to your childcare costs.
Every child aged 3 or 4 in England is entitled to 570 hours of free childcare per year – the equivalent of 15 hours free childcare spread over 38 weeks, from the term after their 3rd birthday.
Two-year-olds can also get free childcare hours. You’re eligible if you are claiming benefits such as income support or jobseeker’s allowance, or if you meet other criteria (see the gov.uk page on free childcare for 2-year-olds for a full list).
30 hours nursery funding
Your child could be entitled to another 15 free hours per week, bringing the total up to 30 hours of nursery funding for 38 weeks.
You can claim the extra hours if you or your partner are working and earning at least £6,240 per year (£5,800 if you are aged between 21 and 24). That’s equivalent to working at least 16 hours a week at the National Minimum or Living Wage.
You can’t claim the free hours if either you or your partner earns more than £100,000 per year.
How to claim your free childcare hours
If your 3 or 4 year old is attending nursery, there’s nothing you need to do to claim your 15 free hours – we’ll take care of it.
If you want to claim the free childcare hours for your 2 year old, you will need to apply. You can do this as soon as your child is 20 months old, through your local authority.
To claim your 30 free hours, you’ll need to set up a government childcare account and apply online. This takes about 20 minutes.
Universal Credit help with childcare costs
You can claim back up to 85% of your childcare costs through Universal Credit. You’re likely to be eligible if:
- you (and your partner, if you’re a couple living together) are working
- your household earns less than £40,000 per year
- you are paying childcare fees
With Universal Credit help for childcare funding, you could claim up to £646 per month for one child, or £1108 per month for 2 or more children.
The government tax free childcare scheme
The government tax-free childcare scheme is another source of help with nursery fees.
When you open an online Tax-Free Childcare account, the government will top up your childcare costs, paying up to 20p for every 80p you put in, up to a maximum of £500 every 3 months (£2,000 per year).
If you have a child with a disability, you could claim up to £4,000 per year.
To be eligible for the government tax free childcare scheme you must:
- be employed or self-employed. If you live with your partner you must both be working or on leave
- earn above the minimum £152 a week
How to apply for government tax-free childcare
You’ll need to apply for tax-free childcare online through the government website. You will need to have a government childcare account set up – this is the same account you will use if you are claiming your 30 hour entitlement.
You will need to re-confirm your eligibility every 3 months in order to keep getting your tax-free childcare top-ups. You will receive reminders to do this.
I’m not sure if I’m eligible for government help with nursery fees. How do I find out?
Check what help you can get with childcare costs, using the government’s childcare calculator.
Can I use childcare vouchers towards my nursery fees?
Yes, we’re happy to accept childcare vouchers from employers who offer this benefit to their employees. Vouchers are non-taxable and exempt from NI contributions for employees, whilst offering NI savings for employers. Both parents are eligible to claim as long as they’re both in employment.
How many sessions per week do I need to book?
Here at our nursery in Sutton Coldfield, the minimum booking is for 2 sessions per week. (One session equals either a morning or afternoon half-day session).
Please note that the Minimum Booking rule is not applicable to grant-funded sessions.
Any questions?
Childcare funding can be complicated, but we’re here to help! If you have any questions about government tax free childcare or your child’s early years entitlement, just get in touch. Contact us on 03330 348962.