Getting Help With Childcare Costs

The Working Tax Credit is an in-work tax credit for families, which includes an element to support the costs of registered or approved childcare for working parents.

Qualifying

To qualify for support, the childcare must be:

• Registered childminders, nurseries, play schemes or out of school clubs
• Schools or other establishments that are exempt from registration
• Providers of childcare for children aged 8 or over, who are approved by specifically accredited organisations
• Approved home childcarers

Applying

To apply for the childcare element of Working Tax Credit:

• Lone parents must work at least 16 hours per week
• Both members of a couple must work 16 hours a week or more
• Or one member of a couple must work 16 hours a week and the other member must be incapacitated

Payment

The childcare element of the Working Tax Credit will be paid into the back account of the main carer alongside the Child Tax Credit.

The childcare element will pay up to 70% of eligible costs.

Families with one child and a family income of up to around £32,000 and families with two or more children and a family income of up to around £42,500 could benefit.

If either the child or the workers are disabled, the family may benefit at still higher income levels.