Help with childcare costs

You can get financial support for children of ALL AGES – not just young ones

As you can see, there's a range of schemes designed to help working families with the cost of childcare. But not all are equal – some will help you save more than others. And remember that in all cases, you need to use a registered provider (see below for how to find one near you).

Consider the options in the section below to see which apply to you. We've listed them in the order you should consider them to make sure you're getting the maximum possible help with your childcare costs...

Quick questions

1. 'Free' childcare for three or four-year-olds (and some younger)

Before you pay for ANY childcare, check if you can get up to 30 funded hours each week.

If your child is three or four-years-old, there are funded hours of education and childcare available across the UK (starting from the term after your child's third birthday), and for nine-month-olds or older in England. How it works depends on where in the UK you live – England's below, or jump to Wales, Scotland or Northern Ireland info.

To qualify for the extra 15 hours of funded childcare, you must

• Be in work

• Earn a minimum of the equivalent of 16 hours a week at the national living or minimum wage

• Earn less than £100,000.01 a year

This applies to both parents in a couple (so each parent must fit the criteria) as well as to single parents.

So, a parent couple each earning £100,000 would still get the extended 30-hour allowance (but not £100,001). But, if one parent doesn't work, your child would get just 15 funded hours.

To get the the first 15 hours, you just contact the provider. However, for the extra 15 hours, you need to apply for the extra hours' funded childcare through the Gov.uk website. If you're approved, you'll receive a code to give to your childcare provider. You'll get the extra hours once the next term starts.

Even if you get 30 funded hours, you still might have to pay 

Since government funding is actually 1,140 hours of childcare a year, this means that for a full 30-hour week, the funding will only actually cover 38 weeks. To work around this, many providers stretch their funded hours by offering fewer hours a week over the year. Providers are also entitled to charge for extras such as lunches and nappies. 

New. Younger children in England now get some funded hours too

Eligible parents of children aged nine months to three years now also have access to 15 hours of funded childcare, and increased to 30 hours of funded childcare from September 2025 (three to four-year-olds will continue to get 30 hours only if their parents qualify) – see the table below.

If you already claim Tax-Free Childcare, you'll get sent a code to claim your funded childcare hours when you reconfirm your eligibility.

How funded hours works in Wales

Parents of three and four-year-olds across Wales are entitled to up to 30 hours a week of funded childcare, across 48 weeks of the year. You can divide the hours up, but at least 10 hours a week needs to be used on early education and 20 hours on general childcare.

To qualify, you must...

• Be in work

• Earn a minimum of the equivalent of 16 hours a week at the national living or minimum wage

• Earn less than £100,000.01 a year. 

This applies to both parents in a couple (so each parent must fit the criteria) as well as to single parents. If you don't meet the 'working parent' criteria, you won't be eligible for any funded childcare hours. 

Before you apply, check that your chosen childcare provider is registered with the Care Inspectorate Wales.

To apply, contact your local family information service or see the Welsh Government website for more information. 

How funded childcare works in Northern Ireland

Three and four-year-olds get a funded pre-school education place through the Pre-School Education Programme, available term-time either on a full-time or part-time basis. Full time amounts to 4.5 hours a day (22.5 hours a week), and part-time 2.5 hours of free childcare a day (12.5 hours a week) for 38 weeks of the year.

To get it, go to the Education Authority's website to get an application form. You can apply to any number of providers, but it's best to select more than one, as your chosen provider might not have enough spaces available.

You have to supply the form and your child’s birth certificate to your first preference childcare provider by the deadline. You can find all application deadlines on the Education Authority’s website.

2. Check if you can get benefits to help with your childcare costs

In work? Get help with 85% of your childcare costs through UC

If you're in work, paying for childcare (including nursery, preschool, after-school clubs, breakfast clubs, childminders, nannies, and school holiday clubs) and claiming UC, you can claim back some of your childcare costs via your online Universal Credit account. 

But you must get your childcare through an approved, registered provider. If you live with your partner, they'll also have to be in work, or be classed as having a 'limited capability for work' by the Department for Work & Pensions.

You can claim up to 85% of your childcare costs, no matter how many hours you work – up to a maximum of £1,032 for one child and £1,769 for two or more children. You'll need to provide evidence of your costs, such as: a letter from your registered childcare provider, a bank statement proving you've paid your provider, or a cash payment receipt.

You can make a claim up to three months in advance but, unless you meet the criteria below, you will only get the money after the childcare has been provided. This means even if you pay in one upfront sum, you may get the money paid back to you in smaller instalments over a few assessment periods.

Claim costs in advance if you're 'significantly increasing' your hours 

A new feature of Universal Credit is that if you move into work or 'significantly increase' your hours, you can be paid a month of childcare costs upfront. The Department for Work and Pensions told us there is no minimum number of hours but work coaches may expect at least a few more hours of work every week.

• If you're entering work: once you know your start date, you need to find a childcare provider, get the approximate monthly cost, then submit this via your journal, you will then get the 85% of the first month credited to your account upfront. 

• If you're increasing your hours: once you know what your next childcare bill will look like, you need to speak to their work coach (via their journal or in person) to start the process.

Scottish resident on low income? You can get extra help

If you’re a Scottish resident on a low income, and look after a child under 16, you may also be able apply for the Scottish Child Payment (£27.15 a week).

To qualify, you must be claiming one of the following benefits:

• Income Support

• Income-based Jobseeker’s Allowance

• Income-related Employment and Support Allowance

• Pension Credit

• Universal Credit

If your claim is successful, you'll get the payment every four weeks until your child turns 16. 

You can apply online using this form. Head to our maternity grants guide for more detailed information on the scheme.

3. Check if you qualify for Tax-Free Childcare

Important: If you claim Universal Credit, you WON'T also be able to use Tax-Free Childcare. Opening a Tax-Free Childcare account will mean you stop getting paid your benefits. 

Below we explain how Tax Free Childcare works, but first a quick word from MSE founder Martin Lewis...

Even if you’re not entitled to benefits, you might still qualify for Tax-Free Childcare instead.

Tax-Free Childcare is a Government-backed scheme which helps working parents with the cost of childcare. The scheme, which launched in 2017, gives eligible families an extra 20% towards their childcare costs.

Tax-Free Childcare is designed so that for every 80p you put in, the government will add 20p – so it effectively gives you basic-rate tax back on what you pay (hence the scheme's name).

You can use the scheme to pay for up to £10,000 of childcare per child each year – meaning you'd pay up to £8,000 and would get up to an extra £2,000 per child each year. If your child is disabled, you can get up to £4,000 extra a year.

You need to be in work to qualify and earn £100,000 or less – this includes those who are self-employed. Tax-Free Childcare is available to both single parents and couples, but if you're in a couple, both you and your partner need to be in work to qualify, and both need to earn £100,000 or less individually.

Once your childcare bill exceeds the Government maximum, there's no more financial support for that year. You can still pay for your childcare through the scheme but you won't get a top-up, so it can be easier just to pay for your childcare directly once you've hit the limit.

The scheme's available until the 1 September after your child turns 11 (or 16 for children with disabilities). See full info in our Tax-Free Childcare guide. 

Childcare Vouchers

Some parents can also use Childcare Vouchers, which allow you to pay for childcare from your pre-tax salary. The scheme closed for new applicants in October 2018, but if you were signed up before then, are with the same employer, and it still offers them, you can continue to get these. 

What works out best will depend on your personal circumstances. But you have to settle for one as you can't use both at the same time. For full info, see our Childcare Vouchers guide.