Who gets 15 and 30 hours of free childcare?

The average cost of full-time childcare in the UK for 2024 is £15,709.¹ The exact cost will depend on where you live and how many hours of childcare you need. This figure is estimated to be nearly half of the average full-time worker’s pay.¹

To help parents, the government has introduced a new scheme, entitling parents to 15 hours a week of free childcare. At present it applies to children under two, the government hopes to extend this to children under five from 2025.

Who qualifies?

To qualify for the free childcare you need to be either working or in receipt of specific benefits.  

Parents earning more than £8,670 but less than £100,000 can get:

•     From April 2024, 15 hours of free childcare for children aged two years old
•     From September 2024, 15 hours of free childcare for children under nine months old
•     From September 2025, 30 hours of free childcare for all children under five years old¹

Parents already qualify for 30 hours of free childcare for three and four-year-olds.  

People on income support, jobseekers allowance, income-related employment and support allowances, universal credit, or child tax credit are already entitled to:

•     15 hours of free childcare for children aged two, three, or four years old

Applying for free childcare

You should apply for free childcare before the start of the term your child will become eligible. For example, applications for the autumn term can be completed between 12 May and the end of August this year. The sooner you apply the better.  

The application form is straightforward and can be completed online. Once you’re approved, you’ll be given a code that can be used to claim your free childcare. However, you must use an officially registered childcare provider.  

Extra costs to be wary of

Although the government is increasing the hourly rate it pays childcare providers, there is no guarantee that this will cover the hourly rate charged. You may be liable for any additional hourly charge over what the government pays. In addition, some childcare facilities will charge extra for meals, nappies, and things like trips. You’ll still have to pay these costs.  

It’s worth looking at whether you’re eligible for free childcare. However, make sure you do your sums before applying. It may still not be worthwhile working!

Sources

1. https://www.bbc.com/news/education-62036045

All the information in this article is correct as of the date of publishing. The opinions expressed in this publication are those of the authors Euxton Mortgage Market. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

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May 2024