Hundreds of thousands missing out on free cash for childcare worth up to £2,000

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Thousands of parents could lose up to £2,000 in childcare every year – here’s how to claim.

Families are feeling the brunt of this cost of life crisis And they might not know that they can get up to £500 every three months. through the government tax-free childcare plan,

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Thousands of families are deprived of childcare cash of up to £2,000 every year

This adds up to a maximum of £2,000 per year – increases to £4,000 per year if your child has a disability.

As per the latest figures from the U.S., over 512,000 households used the scheme in the 2021-22 tax year hmrc,

This was up from 374,000 in the previous year.

but hundreds of thousands families may disappearA recent research conducted by HMRC has estimated that around 1.3 million families may be eligible for this scheme.

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Treasury Secretary of the Treasury Helen Whatley said: “It is wonderful that more parents are adopting tax-free childcare. This aid helps with childcare costs for working families.

“With over a million families eligible, I want to encourage parents to take advantage of tax-free childcare and keep the extra pounds in their pockets.”

For every £8 paid into a tax-free childcare online account, families will automatically receive an additional £2 in government top-up, and this is available for children aged 11 or 17 if the child is disabled. Is.

Parents and caregivers are being urged to check their eligibility and Register for tax-free childcare through GOV.UK,

Myron Jobson, senior personal finance analyst at Interactive Investor, said: “Parents are scrambling for ways reduce their childcare bill The once in a generation plan has the most potential for increased use amid declining living standards.

“But the uptake of the scheme is falling well below the original estimates. There is a need for more and more constructive promotion of the initiative as a large section of the parents were unaware of its existence.”

We explain who is eligible for assistance and how to apply.

Who can get help?

Your child must be under 11 to use the plan, which increases to 17 if they are disabled – and there are other eligibility criteria you must meet.

You can usually get help if you — and your partner, if you have one — are at work, on sick leave or annual leave, or on shared parental, maternity, paternity or adoption leave.

If you are not working, you may be eligible for assistance if you receive one of the following benefits, and if your partner is still working:

  • disability benefits
  • severe disability allowance
  • carer’s allowance
  • Contribution Based Employment and Assistance Allowance

You are expected to earn more than a certain amount in the next three months as well.

You are expected to earn at least £1,853.28, which is the national living wage for those over the age of 23. Your partner has to earn it too.

It is important to note that you cannot get tax-free childcare when you claim the Working Tax Credit, Child Tax Credit, Universal Credit, or childcare vouchers.

How do I apply?

you have to apply gov.uk website To set up an online account to start claiming help.

If you’re self-employed you’ll need some personal information—and your partner’s if you have one—including your National Insurance Number or Unique Taxpayer Reference Number.

In your application, you will be assessed to see if you are eligible for assistance, which can take up to seven days.

It takes 20 minutes to apply, so make sure you have some free time for the application process.

If you are successful, you will have set up your online account.

How it works is that for every £8 you pay into the account, the government will pay £2 to pay your childcare provider.

Apart from the tax-free childcare plan, you should also check if you are eligible for it Child Care Credit, Sure Start Grant or Child Benefits.

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Struggling families can apply for free cash to help with bills, supermarket shops etc. Domestic Assistance Fund.

Also here are Seven ways to get help with energy bills up to £2,975 if you’re on Universal Credit,

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