Education and childcare are important from a young age, with the government emphasising the benefits of good early years education. Studies show that regular childcare can boost children’s development and help break the cycle of poverty.
It also gives children a chance to learn important social and cognitive skills, and to become more independent, preparing them well for their future years at school. Childcare not only helps with education but also allows parents to work, whether part-time or full-time.
To help parents, the government provides the Childcare Choices scheme.
What is Childcare Choices?
Childcare Choices serves as a comprehensive portal for parents to access childcare information and determine their eligibility for Government-funded childcare initiatives. Established in 2017, it replaced the former childcare allowance, consolidating childcare data on a user-friendly website.
The launch included provisions for 15 hours of free childcare, 30 hours of free childcare, and tax-free childcare.
The government designed this system to offer “busy families with options that meet their needs, making it easier to identify the most suitable childcare offer.”
The programme’s objective is dual:
- Reducing childcare costs for working UK families by up to £2,000 per child annually (or £4,000 for disabled children)
- Providing all children aged two years old and above with access to preschool childcare grounded in the EYFS (Early Years Foundation Stage).
What do Childcare Choices offer?
The government website features a tool for selecting the most appropriate childcare option based on personal details like country of residence, salary, and partner information. It then identifies potential childcare schemes for users.
Additionally, the website is equipped with a childcare calculator to assess eligibility and offers subscription options for updates on childcare-related developments.
Eligible parents can benefit from 15 hours or 30 hours of free childcare, as well as tax-free childcare savings.
What are the Benefits of the Different Childcare Choices?
Childcare Choices provides several benefits: 15 hours free childcare, 30 hours free childcare, Tax-Free Childcare, and Universal Credit for Childcare. It also includes guidance for student parents.
15-hours Free Childcare
This cornerstone of Childcare Choices ensures all two-four year olds in England receive free EYFS childcare. Eligible from the 1 January, 1 April, or 1 September following their 2nd birthday, children can access 570 free hours of childcare annually, typically over 38 weeks (term time), or spread throughout the year.
All children in England and Wales aged two-four years old are eligible, with no income restrictions.
- From September 2024, 15 hours of childcare support will be extended to eligible working parents with a child aged from 9-months-old.
Applications are now open for eligible working parents whose children will be two or older by the 31 August to receive 15 hours of free childcare, starting from September 2024.
30-hours Free Childcare
This offer aids working parents of three-four year olds by providing up to 30 hours of free childcare weekly. Eligibility requires each parent to work a minimum of 16 hours per week, but not earn more than £100,000 annually. The scheme is available even during maternity, paternity, and adoption leave, and for those with disabilities or caregiving responsibilities. Registration is necessary via the official childcare website.
Both 15-hour and 30-hour free childcare are available only in Ofsted registered settings but it can be used with one or more childcare providers.
- From September 2025, 30 hours childcare support will be extended to eligible working parents with a child from 9-months-old up to school age.
Tax-free Childcare
Designed for working families, Tax-free Childcare is open to parents with children up to 11 years old (or 16 years old for disabled children). For every £8 paid into an online account by a parent, the government contributes £2, up to £2,000 per child per year (or £4,000 for disabled children).
Earnings must be under £100,000 per year.
- Tax-Free Childcare is only available to parents who don’t receive Tax Credits, Universal Credit or Childcare Vouchers.
Universal Credit Childcare
Replacing Child Tax Credit, this is for working families with children under the age of 17 years. Eligibility depends on working status, claiming Universal Credit, and personal circumstances. Beneficiaries can reclaim up to 85% of childcare costs, but only with Registered childcare providers.
- Universal Credit Childcare is only available to parents who don’t receive Tax-Free Childcare.
Tax Credits for Childcare
Universal Credit has replaced a number of existing benefits, including tax credits – which has been closed to new applications since 1 February 2019. If you already receive tax credits, you don’t need to do anything.
- If you cannot make a new claim for tax credits, you may be able to apply for Universal Credit instead.
How Does Payment work?
For the 15 and 30-hour Free Childcare scheme, eligible parents receive a code to share with their provider, along with their National Insurance Number and child’s birth date.
Tax-free childcare requires electronic payments through the childcare account.
For Universal Credit, payments are received five weeks after an accepted claim.
At Yoopies we understand that finding the right childcare, as well as managing your childcare costs, can be a difficult and stressful process. We’re here to assist you every step of the way, providing a simple way for you to tell us exactly what you’re looking for in a childcare provider.
We want to ensure that you are well informed about all of your options. If you doubts or questions, please don’t hesitate to contact our friendly customer service team, who are ready to assist your further.