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I am looking for help to pay for childcare

Quick links Find out more about help with childcare costs on our Paying for Childcare website. Free early years education for three and four-year olds - find out how to take up your entitlement.   Information for employers about employer-supported childcare.

Frequently asked questions

How much does childcare cost?

This will vary considerably depending on the type of childcare you use, the age of your child, the area you live in and whether you need childcare at atypical times (outside the normal times for childcare, such as in the evening, overnight or at weekends). Costs are generally less for children aged two and over, for childminders and for after-school care. If you require childcare during 'unsocial' hours, such as very early in the morning or overnight, you can expect to pay considerably more for this.

The average cost of a nursery place for a child under 2 for 25 hours a week is £103 per week in England and £92 per week in Wales, but prices vary quite dramatically.

Childminders are self-employed so, to some extent, can set their own fees. There is no set rate. However, as a guide, the current typical cost for 25 hours a week for a child under 2 with a childminder is £93 per week in England and Wales. Childminder costs are often slightly lower than nursery fees: this reflects the difference in overhead costs. For guidance on hourly rates and specific details on holiday pay etc, visit the National Childminding Association's website.

The Daycare Trust annual childcare costs survey shows the typical costs of childcare in the UK. Daycare Trust also publishes a summer holiday childcare costs survey each July. See 'Childcare costs surveys' for information.

What financial help is there to pay for childcare costs?

Financial help towards your childcare costs will depend on your circumstances; whether you are working, about to start work or studying, as well as your income level, childcare costs and the number of children you have.

There are two main types of financial help towards the costs of childcare available for working parents; the childcare element of Working Tax Credit and employer supported childcare.  If your employer does not operate an employer-supported childcare scheme, you might want to suggest that they introduce this within your organisation. To help you with this, we have a number of factsheets that you can give to your employer so that they have some information before making a decision. 

If you are about to start work and have been on qualifying benefits for the required amount of time, you may be eligible for assistance through a Jobcentre Plus scheme such as Work Focused Support for Lone Parents.

If you are thinking of studying you may be eligible for some assistance with your childcare costs through your learning provider or a Government scheme.

For detailed information about tax credits, employer supported childcare, back to work assistance and student support, visit: www.payingforchildcare.org.uk.

What kind of childcare is eligible for financial help through tax credits and employer-supported childcare?

Only registered childcare qualifies for tax and National Insurance exemptions through employer-supported childcare, and for support through tax credits. See 'What is registered childcare?' for information about registered childcare.

Can I claim financial help if a family member looks after my child?

Childcare provided by a relative of a child is generally not eligible for help from the childcare element of the Working Tax Credit or the tax and National Insurance contributions exemptions on employer-supported childcare.

The sole exception to this is when a relative has been registered as a childcare provider and happens to care for a related child, but whose primary or main paid child-caring is for children to whom they are not related. So that being a paid child-carer for the child to whom they are related is incidental - they must be looking after at least one other child who they are not related to. This care must be provided outside the child's own home.

A relative of the child means a parent, grandparent, aunt, uncle, brother or sister, whether by blood, half blood, marriage, or affinity.

Tips for managing childcare costs  

Share the cost

Some parents share childcare with family members or friends. This applies especially to parents who use nannies, which can be an expensive form of childcare. But remember, you can only claim help with childcare costs if your nanny is registered on the Voluntary Ofsted Childcare Register in England (see www.ofsted.gov.uk for information) or approved by the Childcare at Home Approval Scheme in Wales.

Remember that your childcare costs may alter through the year

If you are claiming Working Tax Credit and your childcare costs change by £10 or more per week for at least 4 weeks in a row, your Tax Credit award is likely to change. Any changes to your childcare costs - or other circumstances that affect your Tax Credits claim, for example, income - should be reported to the Tax Credit office within 30 days to avoid overpayments. Contact the Tax Credit Helpline on 0345 300 3900.

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