Help to Pay Childcare Fees

Working Tax Credit and Child Tax Credit – Working Tax Credit (WTC) provides a top up to wages for those on low to middle incomes and the amount people receive is dependent upon their circumstances. You may also qualify for extra help towards the cost of registered or approved childcare through the childcare element. If you do qualify, the amount will be dependent on your income. It can offer up to 70% towards the cost of childcare (80% from April 2006) up to a maximum of£175.00 per week for one child and £300.00 for two or more children. To be eligible ● lone parents must work 16 hours or more per week ● for couples, both partners must work 16 hours per week or more ● one partner must work 16 hours or more per week if the other is incapacitated.

Through the Child Tax Credit parents can receive help towards the general costs with bringing up children and could be eligible for help whether working or not. Families with incomes right up to £58,000 could be eligible. For further information on the Child Tax Credit and the WTC please see www.hmrc.gov.uk/taxcredits/ or ring the helpline on 0845 300 3900.

Employers – some employers may provide childcare through third parties, for example, childminders, nurseries or out of school settings. Some employers may also offer employees childcare vouchers and offer a Salary Sacrifice or Salary Plus Scheme to help meet the costs of childcare.

Since April 2005, in the case of childcare vouchers and employer sponsored childcare through a third party, the first £50.00 per week is free from tax and NIC’s as long as the childcare is registered or approved.

Inland Revenue advise that using forms of employer supported childcare may effect tax credit entitlements and that parents should be aware that participating in salary sacrifice schemes could have an effect on earnings related benefits such as state pensions and statutory maternity and paternity leave. Further information can be found on: http://www.hmrc.gov.uk/childcare/

The Daycare Trust has written two fact sheets – one for employers and one for employees that explains how the voucher scheme works and lists a number of Childcare Voucher providers and their contacts.

Nursery Education Funding for 3 and 4 Year Old Children

Every 3 year old (a term after their third birthday) and all 4 year olds are entitled to free part time nursery education. This Fact Sheet explains how the Nursery Education Funding scheme works.

Childcare Affordability Programme

Website

Is a pan-London pilot to assist parents in finding affordable childcare for children aged 0-5. CAP is not available to all and to be eligible, parents need to be paying in excess of £175 per week per child for childcare and be in receipt of the child tax credit at a higher rate than the family element, which for 2007/08, relates to parents receiving in excess of £545.34. The following providers are currently taking part in the pilot:

Childcare Grant – Childcare Grant is available to HE students to help pay for registered or approved childcare. More information on the Childcare Grant and other financial support for student parents can be found on www.dfes.gov.uk/studentsupport

Learners Support Fund

FE Colleges and some other education providers may administer Learners Support Funds which are available for student parents on low incomes to help them pay for registered or approved childcare.

Lone parents who join the New Deal for Lone Parents may be eligible for some help with their childcare fees while they train or search for work. Information is available from www.newdeal.gov.uk or from Lone Parent Advisor’s at Job Centres.

Charities – You may be able to apply for funding from local charities or look in the publication “Directory of Grants for Individuals in Need” which lists organisations that give money to individuals and includes their criteria. In Enfield, this Directory may be found in the reference section of Central Library.

Other Financial Information

Child Trust Fund.

CTF is a new long term savings and investment account for children. Eligible children born between 1st September 2002 and 5th April 2005 will receive a CTF voucher to start their account and eligible children born on or after 6th April 2005 will recieve their voucher shortly after Child Benefit has been claimed and awarded for them. The account belongs to the child and once they turn 18 they will be able to decide how to use the money. For further information telephone the helpline on 0845 302 1470.