If you work, after-school care isn’t a luxury – it’s what makes the working day possible. But the cost adds up fast, especially with more than one child. The good news is that after-school clubs, breakfast clubs and holiday clubs can all qualify for government help, as long as the provider is registered. Many families who could claim don’t, simply because the schemes sound complicated. Here’s a plain guide.

The two main schemes

For school-age children in England, most working families will use one of two schemes:

• Tax-Free Childcare – a government top-up on money you pay into an online childcare account
• Universal Credit childcare costs – money paid back to you through your Universal Credit claim

You can’t use both at the same time. To get Tax-Free Childcare, you must not be receiving Universal Credit. So the first step is working out which one fits your family.

Tax-Free Childcare: how it works

You open an online childcare account and pay money in. For every £8 you pay in, the government adds £2. You then pay your childcare provider straight from the account.

• You can get up to £500 every three months per child – up to £2,000 a year.
• For a disabled child, it’s up to £1,000 every three months (up to £4,000 a year).
• It covers children aged 11 or under (16 or under if disabled).
• It can be used for after-school clubs, breakfast clubs and holiday clubs, provided the provider is approved.

Who can get it? You (and your partner, if you have one) usually need to be working and expect to earn at least the equivalent of 16 hours a week at the National Minimum Wage or National Living Wage, on average, over the next three months. You can’t get it if either of you expects adjusted net income over £100,000 in the tax year, or if you’re receiving Universal Credit or childcare vouchers.

Don’t forget: you have to reconfirm your details every three months, or the top-ups stop. Set a phone reminder. Check the eligibility rules on Best Start in Life, the government’s family information site.

Universal Credit childcare costs: how it works

If you’re on Universal Credit and working (or about to start a job within a month), you can claim back up to 85% of your registered childcare costs.

• The current maximum is £1,071.09 a month for one child and £1,836.16 a month for two or more children.
• After-school clubs and some holiday clubs count, as long as the provider is registered (in England, usually with Ofsted).
• You report your costs through your Universal Credit account, and you’re paid back in your next payment, after the childcare has happened.
• If paying upfront is a problem, you may be able to get help with upfront childcare costs when you start work or increase your hours.

See how Universal Credit childcare works. Tip: report your costs promptly and keep every invoice and receipt. Late reporting can mean you lose out.

A simple example

Say after-school care costs £200 a month for one child.

• With Tax-Free Childcare: you pay £160 into your account, the government adds £40, and the £200 bill is covered. You save £40 a month.
• With Universal Credit: you pay the £200, report it, and get up to £170 (85%) back in your next payment. You save up to £170 a month.

The right scheme depends on your situation, not just the percentage. If you’re eligible for Universal Credit, the 85% support is usually worth more. If you earn too much for Universal Credit but are under the £100,000 limit, Tax-Free Childcare is likely to be your route. Because the rules depend on your income and household, the government’s childcare calculator is the best way to check.

Before you pay any childcare provider

Whichever scheme you use, check that your provider is registered. Unregistered care usually won’t count. Ask the provider for their registration details, and make sure invoices show the dates and amounts clearly. They make claiming much easier.

Redbrick Academy is Ofsted-registered. If you’d like to use Tax-Free Childcare or Universal Credit to pay for a place, ask us about payment options.

Quick takeaways

• After-school, breakfast and holiday clubs can qualify for help, if the provider is registered.
• Tax-Free Childcare: £2 for every £8 you pay, up to £2,000 a year per child.
• Universal Credit: up to 85% of costs back, up to the monthly maximums.
• You can’t use both at once, so check which suits you.
• Reconfirm Tax-Free Childcare every three months, and report Universal Credit costs on time.

Talk to us

If you’d like to know what after-school or holiday club care would cost for your family at our Longsight, Old Trafford or Oldham settings, get in touch and we’ll talk you through it.