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How-to Guides » Cut the cost of having a baby

Having a baby can cost a small fortune. Here's how to keep your costs down - and set your baby up, financially, for life!

Make the most of benefits

How-to Guide Tips 3 tips on this task  | 

1) Claim Child Benefit
You can currently claim Child Benefit as soon as your baby is born - just fill in this form.

You'll get £20.30 a week for your eldest/only child, and an extra £13.40 for any additional children. It's currently not means-tested, so you can claim it no matter what your income is. However, from 2013, if you earn £44,000 a year or more, you will no longer be eligible for such payments.

You can get a claim backdated but only for three months.

2) Claim Tax Credits
When you have a baby, you may be able to claim Tax Credits.

How much of a credit you can claim obviously depends on your circumstances, and it’s worth having a little play with the HMRC Tax Credit tool to see if you qualify, and how much for.

As a rough rule of thumb, you might not get Child Tax Credit if your yearly income is more than £26,000 and you have one child, or you have two children and your income is more than £32,200. But if you have more than two children, pay for childcare or you or your children has a disability, you may be eligible.

The basic amount is up to £545 a year.

You can get extra Tax Credits to help pay for childcare if you qualify for Working Tax Credit and use an approved childcare provider.

You can get up to £122.50 a week for one child and up to £210 a week for two or more children.

If you get childcare vouchers from your employer, this can affect the amount of Tax Credits you'll receive.

Use HMRC's Better Off calculator to see if you'll be better off using childcare vouchers or claiming Tax Credits.

3) See if you can apply for a Sure Start Maternity Grant
If this is your first baby, you're on a low income and are receiving certain benefits such as Income Support and income-related Jobseekers' Allowance, you could be eligible for a grant of £500.

You must claim within 11 weeks of expecting the baby or up to three months after the birth.

You can download form SF11 from the GOV.UK website.

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Tips on this task (3)

  • babyhk
    Love rating 10
    babyhk said

    The simplest way of saving money is to breast feed . I have 5 children - all breast fed.

    Yes it does hurt a little at first but if you look at the price of baby milk in supermarkets ... wow that really hurts plus the all the known advantages of breast milk.

    Weaning ... cheap easy = make your own baby food.

    Amazed that a small jar of apple puree was 60p.

    Report on 02 January 2013  |  Love thisLove  0 love
  • Kath
    Love rating 0
    Kath said

    Well done not enough people breast feed. Free and the best. Just need dedication and love.

    Report on 12 August 2013  |  Love thisLove  0 love
  • electricblue
    Love rating 785
    electricblue said

    Is this article available in Polish, Latvian, Ukranian, Lithuanian? I think someone must have published an article like this all over Eastern Europe. I'm personally very pro the influx from former Eastern Bloc countries as I think they are for the very most part very hard working - but they are certainly happy to bring up a new generation of 'British' children. Mustn't complain, we need a huge number of workers to pay those pensions in 30 years time.

    Report on 10 December 2013  |  Love thisLove  0 love

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