What is the free childcare offer?
In his Spring Budget, Chancellor Philip Hammond announced that working parents in England will be able to apply for an extra 15 hours of free childcare for three- and four-year-olds from 1 September, taking the total to 30 hours a week.
The offer is generally available for 38 weeks each year – term-time – and works out to an additional 570 hours of childcare a year (or 1,140 in total).
But if you want to apply you need to do so today (31 August), as the deadline for applications closes at midnight.
According to HMRC, anyone who does so today will receive an 11-digit code, which can be given to their childcare provider.
Miss the deadline and you’ll need to wait until the Spring term to apply, and funding will not be backdated.
If the current help isn’t enough to ease the financial burden, here are some more options to cut the cost of childcare.
Who is eligible?
You can only claim after your child’s third birthday.
To qualify, you – and any partner – must each expect to earn (on average) at least £120 a week.
If you’re aged 21-24, the requirement falls to £112.80 a week for those between 21 and 24 years old and £56 a week for apprentices in their first year.
That’s the lower threshold: any parent earning more than £100,000 won’t be eligible.
Finally, you’ll need to confirm you’re still eligible every three months.
Will my local childcare provider support the scheme?
The 30-hour free childcare is available at participating:
- Nurseries and nursery classes
- Playgroups and pre-schools
- Childminders
- Sure Start Children's Centres
Participating is the key word here. The scheme is optional, so it may be your local nursery or childcare provider may not be taking part. You’ll need to check with them.
Controversy surrounding the new offer
You might be wondering why a provider would choose not to offer the new scheme.
This is because many, specifically smaller nurseries, simply cannot afford to do so.
The key problem, they say, is that the Government funding provided for the new scheme simply doesn’t cover the costs.
We discussed the astronomic costs of childcare in this feature if you’d like to read more.
If you’re interested in further childcare support, have a read of our guide to Tax-Free Childcare.