Reduce your Childcare Costs
There are lots of different ways of reducing the cost of childcare but it can be confusing to know where you stand. York Family Information Service (YorkFIS) provide free and impartial information on the different options for parents and carers. We've collected together some of the main ways of reducing your childcare costs and also where you can find more information.
Daycare Trust - Paying for Childcare Website
The Daycare 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.
Support for all parents
Free Early Years Entitlement for 3 and 4 year olds
All families are entitled to up to 15 hours of "early education" for 38 weeks of the year from the term after their child turns three. It is simple to take up and can make a massive difference to your bill. For more information see the Early Education Section.
Support for working parents
Childcare Element of Working Tax Credit
Working Tax Credit provides a top up to wages for those on low incomes. Extra help is available for working parents through a childcare element, which can help with the cost of registered or approved childcare. From the 1st April 2011 it can offer up to 70 per cent towards the costs of eligible childcare up to a maximum level of £175 per week for 1 child and £300 per week for 2 or more children. You may be able to claim the childcare element of Working Tax Credit:
- If you are lone parent you must work 16 hours or more per week.
- If you are part of a couple, both you and your partner need to be in paid employment of 16 or more hours per week. However, you will also be eligible if 1 of you works 16 or more hours per week and the other does not work, but is an in-patient in hospital, in prison or incapacitated for childcare purposes
Disabled child element of Child Tax Credit
If you are claiming Disability Living Allowance for your child, you may also be able to claim extra support through the disabled child element of Child Tax Credit. There are two elements:
- disabled child element - for each child within the family receiving Disability Living Allowance (DLA) or who is registered blind; and
- a severely disabled child element - in addition to the disabled child element, for each child within the family who is receiving the highest rate care component of Disability Living Allowance.
To find out how much you could claim call the Tax Credits Helpline on 0845 300 3900 or visit http://www.hmrc.gov.uk/taxcredits/
Through your employer
Childcare Vouchers
Many employers support their staff with their childcare needs, including providing financial assistance. The most common way is where you can buy up to £55 a week of childcare vouchers directly from your pay. The part of your earnings you get in a voucher is free from tax and National Insurance.
Talk to your manager about what support they offer with childcare costs. If your manager does not know about childcare vouchers then please give them our number at the Family Information Service (01904 554444) and we can give them information about setting up a voucher scheme.
Flexible Working
If your child is disabled and under the age of 18 you have the right to request to work flexibly. This can help create balance between work and home. From April 2007 the right to request flexible working was extended to relatives looking after disabled adults aged 18 and over.
Employers have a statutory duty to consider such requests seriously, and will only be able to refuse when there is a clear business reason.
To be eligible to make a request for flexible working under these provisions you must:
- have worked for your employer for 26 weeks on the date the application is made
- not be an agency worker or member of the armed forces
- not have made an application for flexible working in the past 12 months.
For more information about flexible working contact York Family Information Service 01904 554444. You can also contact Working Families on 0800 013 0313 for advice on your rights at work.
Search for services
Parents Guide to Money
The Financial Services Authority have produced a parents guide to money (opens in a new window). It covers work, debt, childcare, tax credits and also has online calculators to help you know where you stand.
