Nursery Education Grants
What Is A Nursery Education Grant?
A Nursery Education Grant is money allocated by the government to fund part-time nursery care for children three years old and above. It can be used to send a child to a range of places from a private day nursery - like Pennies to a registered childminder. However, it is important that you check that any childcare provider you might want to use is on a registered list in your local area. If they are not registered in this way you will not be able to use Nursery Education Grant money to fund childcare with them.
What Savings Can I Make at Pennies
The funding can be paid up to 15 hours over 2 days attendance (e.g. 1 day = 10 hours can be claimed, 2 days = 15 hrs can be claimed).
What Do I Do Next?
Contact your local authority and enquire directly to their Children's Services sector who will be able to advise you on the grants and provide you with a list of registered childcare providers in your local authority area.
Click here for more information about Nursery Education Grants
Tax Credits
What Is Child Tax Credit?
Child Tax Credit is a means tested benefit paid to parents and carers who have at least one young person under 16 registered as living at their address. Although the benefit is means tested you can currently claim some money if you earn well above that national average income. Higher earners will - however - be able to claim less than lower earners. Couples can claim for the benefit to be shared between them and single people who are sole carers for a child can claim. In the case of a separated couple the money will be paid to the person with the main responsibility for childcare. Additional payments are also available to people with a new baby.
What Is Working Tax Credit?
Working Tax Credit is a scheme of payment designed to top up the earnings of those on low incomes. Payments are means tested and lower earners receive higher amounts of Tax Credit. Other factors taken into account in calculating the money include your age and how many hours a week you work. Unlike the other benefits outlined on this page you do not need to have children to claim Working Tax Credit, although people with children are likely to be able to claim more. To qualify for Working Tax Credit you must be at least 25 years old and working at least 30 hours per week. You can claim Working Tax Credit if you are 16 years old or above and responsible for the care of at least one child and working at least 16 hours per week.
What Do I Do Next?
To check into your eligibility for Child Tax Credit and Working Tax Credit contact the tax credit helpline on 0845 300 3900 between 8 am and 8 pm.
Click here for more information Child Tax and Working Tax Credits
Childcare Vouchers
What Are Childcare Vouchers?
Childcare vouchers can be used to pay for childcare. You can gain childcare vouchers along with your salary as part of a salary sacrifice scheme or a salary plus scheme.
How Do They Work?
The working of childcare vouchers can vary depending on the deals offered by employers. Some employers make deals with childcare voucher companies to supply childcare vouchers, other employers run their own schemes. However you have been supplied with childcare vouchers you will be able to use them in payment for childcare. The childcare provider can take the voucher from you and claim the payment detailed on the voucher directly from the organisation who gave you the voucher.
What Savings Can I Make?
Taking payment in childcare vouchers will stop you having to pay tax and national insurance on any amount up to £55 per week (£243 per month). This is likely to save you money on childcare. If you are a lower-level tax payer you could save more than £962 per year, this figure rises to £1,195 for higher rate tax payers. If partners join a voucher scheme, allowing you to gain twice the amount of savings.
Those earning below the tax bands do not benefit from tax savings with a employer-supported childcare. Those who earn below the primary threshold for National Insurance Contributions do not benefit from National Insurance Contributions savings.
How Much Can I Receive in Vouchers?
There is no upper limit to what you can receive but you can only claim tax and National Insurance exemptions on the first £55 per week. If you take a salary cut to allow for your vouchers you are not allowed to fall below the minimum national wage.
What Do I Do Next?
If your current employer offers a childcare voucher scheme contact the person responsible and discuss your needs. If you think yourself and others in your employment could benefit from such a scheme you can suggest this to your line-manager. It may be more appropriate to raise the issue with the HR Department or your union. If there is no knowledge of childcare vouchers at your place of work; then you can find information and calculate whether you would be better off for using them from here http://www.hmrc.gov.uk/calcs/ccin.htm.
Click here for more information about accepted voucher schemes
