Families Could be Missing Out on Thousands of Pounds of Childcare Savings

Thousands of families across Tameside could be eligible for savings when paying for childcare for school-aged children.

Working families sending their child to school for the first time in September are encouraged to check if they are entitled to the government’s Tax-Free Childcare support.

Tax-Free Childcare can be used flexibly to pay for childminders, after-school clubs, school holiday care or wraparound childcare. Parents can use the scheme to pay for childcare for children aged 11 or under, or up to 16 if the child has a disability.

By providing extended support outside school hours, working parents can use a range of childcare provisions to fit in with their working pattern.

For every £8 deposited in a Tax-Free Childcare account, the government tops it up by £2 which means parents can receive up to £500 (or £1,000 if their child is disabled) every 3 months to use to pay for their childcare costs. This equates to financial support of up to £2,000 a year per child, or £4,000 if their child is disabled, towards the cost.

Once an account is opened, parents can deposit money and use it straight away or keep it in the account to use it whenever it’s needed. Any unused money in the account can be withdrawn at any time. Julie, a mother of three, from Droylsden, said:

“I have been able to save money on the cost of my older child’s holiday club. I didn’t realise Tax-Free Childcare was available for school-age children.”

Tameside Council Executive Member for Children and Families, Councillor Teresa Smith, said:

“I understand that parents finding the right type of wraparound care before and after school for their children can be challenging when balancing it with work commitments, so Tax-Free Childcare can make a real difference to families.

This helping hand can open up opportunities to find suitable childcare solutions, whilst freeing up time to ensure working arrangements can fit in with your child’s day, so I encourage working parents to check if they are eligible for this support.”

Tax-Free Childcare can be used alongside the free childcare hours for children aged 9-months-old, subject to eligibility.

To check if you are eligible for Tax-Free Childcare, a full list of the eligibility criteria is available on GOV.UK.