Childcare is one of the most expensive costs for parents today. According to moneyhelper.org, a GOV.uk site, the average cost of sending a child under 2 to nursery full-time is £263.81 per week or £1,143.18 a month. For lower-income families, this can make their standard of living difficult as disposable income from employment can quickly disappear after other bills as well. The Government do offer some support however and one of the most commonly used support packages is tax-free childcare. The calculator above can help you work out how much money the Government will contribute towards your childcare bill. Most families will be eligible for the tax-free childcare scheme, below we have highlighted some important points taken from the GOV.uk website.

What is the tax-free childcare scheme?

Families in the UK can get up to £500 every 3 months (£2,000 per year) for each child to help with the costs of childcare. If children are disabled the amount goes up to £1000 every 3 months (£4,000 per year). For Every £8 contributed by the government will pay another £2. Eligibility depends on 4 main factors: Working status, Household income, The child’s age and circumstance and Immigration status. You can use the government top-up money towards approved childcare which could include, nurseries, nannies, childminders, after-school clubs, play schemes and home care agencies. The childcare provider must be signed up to the scheme before you can pay them the top-up money.