Childcare is expensive, but there are schemes to help you with the costs. Here we explain the key support available for parents of pre-school children and how to apply.
Tax-free childcare
Tax-free childcare is available to working parents earning the equivalent of the minimum wage for at least 16 hours per week. For every £8 paid into your account, the government adds an extra £2, up to a maximum of £2,000 per child per year (or £4,000 for a disabled child). This money can then be used to pay for approved childcare including nurseries, childminders, after-school clubs and holiday schemes.
Your child must be under 12 years old, or under 17 if they have a disability.
You must not be receiving support through Tax Credits or Universal Credit.
You can top up your online account via bank transfer, standing order or direct debit, and then use the money in your account to pay your childcare provider directly.
The government requires you to reconfirm your details every three months.
Apply for tax-free childcare at gov.uk.
Free entitlement (government-funded childcare)
If you've heard of 15 or 30 free hours, this is the free entitlement.
The universal offer provider 15 hours per week for all pre-school children from 9 months old.
The extended entitlement provides an additional 15 hours per week for 3 and 4 year olds in working families.
From September 2025, working parents will receive 30 hours for all children under the age of 5.
Whilst the free entitlement is marketed as 30 hours per week of funded childcare, the reality is those hours are based on term-time or 38 weeks per year, meaning parents are required to make up the shortfall during the school holidays. Parents can spread the hours over additional weeks, which is useful if you're only accessing part-time care.
Like tax-free childcare, parents must be earning the equivalent of 16 hours per week atg the National Minumum Wage, and neither parent can be individually earning over £100,000. Households with an income above this amount but where both parents are individually below the threshold are still eligible.
Universal Credit for childcare
Working families claiming Universal Credit can get up to 85% of their childcare costs covered. The maximum amount is currently £951 per month for one child, or £1,630 for two or more children.
For more information, visit Childcare Choices.