Help with Childcare Costs in the UK: What You’re Entitled to and How to Get It

Help with Childcare in the UK – What Every Parent Needs to Know

Let’s be honest, childcare isn’t cheap. Whether it's nursery fees, holiday clubs, or wraparound care during the school run, it all adds up fast. And if you're anything like me, you’ve probably Googled “help with childcare” more than once, wondering what support you're actually entitled to.

The good news? There’s real help available, but it’s often badly explained, and far too many parents miss out. Below, I’ll walk you through the main schemes available in the UK, including Tax-Free Childcare, Universal Credit, free school holiday programmes, and the new funded childcare hours that came into force from September 2025 (England only)

I’ve also included answers to some of the most Googled questions from UK parents, so you can skip the jargon and get straight to what matters: saving money.

1. Tax-Free Childcare – Worth Up to £2,000 per Child Each Year

Let’s start with one of the most valuable (and confusingly named) schemes: Tax-Free Childcare. It has nothing to do with tax codes, and it's not actually tax-free; it’s a government top-up.

What is it?

When you pay into a Tax-Free Childcare account, the government adds 20p for every 80p you contribute. That’s a 25% boost, up to:

• £500 every 3 months per child

• Or £1,000 every 3 months if your child is disabled
  

Who qualifies?

You can get Tax-Free Childcare if:

• Your child is under 12 (or under 17 if they have a disability)

• You (and your partner if you have one) are working, earning at least £850/month (if over 23)

• Neither of you earns £100,000+ per year
  

Your childcare provider must also be Ofsted-registered (or equivalent in Scotland, Wales or NI). Most nurseries, after-school clubs and holiday clubs are, but it’s worth checking.

Top tip:

You can still use this just for the school holidays, perfect if you're booking a summer camp or holiday club. You don’t need to use it year-round.

Who gets help with childcare?

There are several ways to cut the cost of childcare, depending on your child’s age and your circumstances:

• Tax-Free Childcare – available for children under 12 (or under 17 if disabled).

• Universal Credit childcare support – if you’re working and claiming UC, you can get up to 85% of costs back.

• Funded childcare hours – all parents of 3- and 4-year-olds get 15 free hours a week in England, Scotland and Wales, with working families able to get up to 30 hours. In Northern Ireland, it’s 12.5 hours. Some 2-year-olds also qualify if parents are on benefits.

• New expansion (England only) – from September 2025, working parents can claim 30 funded hours a week from when their child turns 9 months, right up until school age.

• Free School Meals holiday support – in England, this gives access to free activities and meals in school holidays.
  

Still unsure? Visit Childcare Choices and use their eligibility checker to determine what benefits you're eligible for.

2. Universal Credit Childcare Support – Up to 85% of Costs Back

If you're working and receiving Universal Credit, you may be entitled to get up to 85% of your childcare costs reimbursed.

How much can I get?

• Up to £1,014.63 per month for one child

• Up to £1,739.37 per month for two or more children
  

You must pay for the childcare upfront and then claim the money back via your Universal Credit account. It’s paid in arrears, so keep your receipts and invoices.

Can I get Tax-Free Childcare and Universal Credit?

No, you can only choose one or the other. If you're on UC, the UC childcare element will usually be better value.

Where can I get help with childcare costs?

There are four main sources:

1. Tax-Free Childcare – through your Gov.uk account

2. Universal Credit – claim through your UC journal

3. Free early education hours – 15 or 30 hours, depending on your situation

4. Local council schemes – especially for holiday club places or those on free school meals
   

You may also find limited employer support; some employers still offer childcare vouchers (though this is now closed to new applicants).

When does government childcare help start?

This depends on your child’s age and your circumstances:

Your Child's Age	Scheme Available
Age 2+	15 hours free if on benefits/low income
Age 3–4	15 or 30 free hours (for most working families)
Under 12	Tax-Free Childcare
Under 17 (disabled)	Tax-Free Childcare
9 months+ (from Sept 2025)	30 hours funded childcare (England only)

Use the term after your child’s birthday as a rough guide for when hours kick in.

Free School Meals? Get Free Holiday Clubs and Food Too

If your child gets Free School Meals in England, your local council should offer free holiday clubs and meals during school breaks, especially over summer.

The scheme is known as the Holiday Activities and Food Programme (HAF).

What’s included?

• Free activities (sports, crafts, games)

• One free meal per day

• Often runs for 1–4 weeks during the school holidays
  

Places fill up quickly, so check with your school or local council ASAP. Search your area + “holiday activities and food programme” online.

What help is there if I'm not working?

If you're not working, you won’t qualify for Tax-Free Childcare or UC childcare support. But you may still get:

• 15 free hours of childcare from age 2 if you're on certain benefits

• Holiday support if your child gets Free School Meals

• Help as a student, such as a Childcare Grant for higher education students
  

It's still worth speaking to your council or school, they often have extra schemes.

Help with Childcare When Studying

If you’re studying and looking after young children, there is help available, though it depends on what you’re studying and your age.

In higher education (university)?

If you're a full-time student with a low household income, you may be eligible for a Childcare Grant through Student Finance. It can cover up to:

• 85% of your childcare costs

• Up to £188.90/week for one child

• Up to £323.85/week for two or more children
  

Unlike a student loan, this grant doesn’t need to be repaid.

Aged under 20 and studying at school or college?

You may be able to get help through the Care to Learn scheme, which pays:

• Up to £175 per child, per week

• For registered childcare and even travel costs

Ask your college or sixth form for details — they’ll help you apply.

On a training course?

Some government-funded training programmes include childcare support. Ask your provider or your DWP work coach what's available.

30 Hours Funded Childcare for Under-5s – What You Really Get

Parents often call it “free childcare,” but the truth is it’s funded childcare, and there are catches. The government pays for a set number of hours, but nurseries and childminders can still charge for extras like meals, nappies and trips.

Here’s how it works:

Your child’s age	Working parents	Non-working parents	Notes
9–23 months	30 hours per week (1,140 hours per year)	None	Starts the term after your child turns 9 months
Age 2	30 hours per week	15 hours per week if on certain benefits	Apply via Gov.uk
Age 3–4	30 hours per week	15 hours per week for everyone	Universal entitlement from the term after 3rd birthday

Eligibility rules:

• You (and your partner, if you have one) must each work at least 16 hours per week at national minimum/living wage.

• You can’t earn more than £100,000 each.

• Apply online at Gov.uk to get a code for the 30 hours — you’ll need to give this to your childcare provider.
  

Important: The funding only covers 38 weeks of the year (1,140 hours total). Many providers “stretch” this by spreading fewer hours across 50+ weeks, so check how your nursery handles it.

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Wales

• Parents of 3- and 4-year-olds can receive up to 30 hours of childcare per week, split into at least 10 hours of early education and 20 hours of childcare.

• It runs for 48 weeks a year, so it covers more of the school holidays than England.

• Income rules are the same: both parents must work at least 16 hours per week and earn under £100,000.

• Apply through your local Family Information Service.

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Scotland

• All 3- and 4-year-olds are entitled to 1,140 hours per year (about 30 hours per week in term time).

• Some 2-year-olds qualify if parents are on certain benefits.

• How you use the hours depends on your local council, ask your childcare provider or check ParentClub.scot

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Northern Ireland

• Children aged 3–4 get 12.5 hours per week during term time through the Pre-School Education Programme.

• Places are limited and you apply through the Education Authority, so it’s worth putting down more than one choice of provider.
  

Real Stories: We Forgot To Use The Tax-Free Childcare For Months!

I’ll hold my hands up, we messed this up ourselves!

For a few months, my wife was paying our son's childminder and after-school club directly from her bank, instead of through our Tax-Free Childcare account.

It wasn’t intentional; she kept forgetting to log in to the Gov.uk portal and depositing funds. After receiving a reminder email from the childminder, she’d then panic and pay directly from her bank account, to avoid paying late, or any later than she already was!

It seemed like the quicker fix at the time... but in hindsight, it cost us hundreds of pounds in lost top-ups.

Why? Because if you don’t pay via the Tax-Free Childcare account, you don’t get the 25% boost. So if you pay £400 directly from your bank, that’s £400 gone. However, if you pay the same £400 through the TFC account, the government would add £100, giving you £500 worth of childcare for the same out-of-pocket cost.

It’s a painful lesson, so if you’re using the scheme or thinking about it, here are two things I wish we’d done sooner:

Tips to stay on track:

1. Set a recurring calendar reminder. Add a “Pay childcare via Gov.uk” alert to your phone or shared family calendar a few days before payment is due. It helps prevent those last-minute “Oops!” moments.

2. Pre-load your Tax-Free Childcare account. If possible, add money in advance (e.g., monthly or fortnightly), so it’s available when the invoice arrives. The top-up hits your account almost instantly, so you don’t need to wait days.

It’s easy to forget in the middle of a busy week, especially with kids, work and life flying at you, but those 20% top-ups really do add up.

Maximise Your Childcare Support

Here's what I’d suggest:

• Use ChildcareChoices.gov.uk to check what you're entitled to

• Search your local council + “holiday activities and food programme”

• Keep receipts if you're claiming through Universal Credit

• Don’t assume you won’t qualify; many families do!

If you found this post helpful, feel free to share it, or tag me on Instagram @thepennypincheruk if you’ve got your own tip to add.