Financial help with childcare

The nursery education fund (NEF)

The NEF is paid to the nursery education provider and covers the cost of part-time nursery for three-year-olds. It is paid for each two hour session, for a maximum of five sessions in a week for 33 weeks per year. Children are eligible for a grant aided place the term after their third birthday.

Your child may have a place:

• In a school
• In a playgroup
• In a Children’s Centre
• In a private day nursery
• In a voluntary sector nursery

However, your child must be attending the nursery or playgroup on the 'head count' date each term and your provider can tell you when this is.

The childcare element of working tax credit

Working tax credit is a payment from the government to support working families on low income. If you have at least one child or are responsible for bringing up children and are paying for registered childcare you may qualify for the childcare element of working tax credit.

The childcare element could pay up to 80% of childcare costs depending on your individual circumstances. You should contact the Tax Credit Helpline to see whether you could benefit from this scheme.

You can apply if:

• you’re a single parent working at least 16 hours a week, or live as a couple where each of you works at least 16 hours a week or one of you is disabled and
• you pay for registered childcare i.e. a registered child minder or a nursery or after-school club or holiday play scheme (informal childcare such as friends or relatives will not be eligible).

How much help with childcare costs will I get?

The childcare element can help with up to 80% of your eligible childcare costs. There are limits on the weekly costs you can claim. If you pay childcare for:

• one child, the maximum you can claim is £175 a week
• two or more children, the maximum is £300 a week

The actual amount you receive will:

• depend on your income
• number of children
• weekly limit on costs
• percentage of costs covered by childcare element
• maximum childcare element available
  

If you have one child, you can claim 80% of costs from a maximum of £175.00 per week (i.e. £175 x 80% = £140.00).

If you have two or more children, you can claim 80% of costs from a maximum of £300.00 per week (i.e. £300 x 80% = £240.00).

The childcare tax credit can cover up to 80% of weekly childcare costs.

For further information on the nursery education grant please contact the Children's Information Service on 020 7364 6495.

For further information on working tax credit/childcare tax credit please contact Inland Revenue on telephone number 0845 609 5000.