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Daily Mirror
Daily Mirror
Business
Levi Winchester

Free childcare changes explained in FULL - who gets it and when will new rules kick in

Extra help for parents including the expansion of free childcare formed a massive part of what was announced in the Budget this week.

At the moment, parents of children aged three and four in England are entitled to 15 hours of free childcare per week.

Some three to four year olds are eligible for 30 hours free childcare per week, if their parents work and meet certain conditions.

You must earn a minimum of the equivalent of 16 hours a week at the National Living or Minimum Wage, and less than £100,000 a year.

This applies to both parents in a couple and single parents.

Families with a low income, and on certain benefits, may also get free childcare for two year olds.

Free childcare hours are usually taken over 38 weeks (to cover term time) but you can normally spread it out to cover more weeks by using fewer hours a week.

The free hours must be used with a registered childcare minder, such as some private nurseries or state-run pre-schools.

In his Budget yesterday, the Chancellor announced sweeping reforms to free childcare in England. Here is what you need to know.

To note: there are separate free childcare systems in Wales, Scotland and Northern Ireland.

Free childcare changes explained in full

The Chancellor has expanded free childcare in England to cover all children of eligible working parents under five.

But the new system won’t be implemented straight away - instead, it will be introduced in stages.

Here is how it will work:

  • From April 2024: 15 hours of free childcare per week for eligible working parents of two year olds

  • From September 2024: 15 hours of free childcare per week for eligible working parents of nine month to two year olds

  • From September 2025: 30 hours of free childcare per week for eligible working parents of all under-fives

What other childcare changes were announced?

Those claiming Universal Credit in England, Scotland and Wales will also be given some funding for childcare costs upfront.

At the moment, claimants have to pay for childcare and can then claim back 85% of the cost.

The maximum that can be claimed will also increase from £646 a month for one child to £951, and from £1,108 for two or more children to £1,630.

The hourly rate paid to childcare providers for free care will be boosted as well, in order to help deliver the expansion of free childcare hours.

On top of this, a £600 incentive will be offered for people signing up to become childminders, or £1,200 through an agency.

Finally, each staff member will be allowed to look after five two year olds - up from four now.

What other childcare help is available?

Eligible parents can get up to £500 every three months - or £2,000 a year - for each of your children through the tax-free childcare scheme.

For disabled children, the maximum amount you could get rises to £4,000.

The tax-free childcare scheme allows parents to pay into an online account, and the Government will then add a certain amount on top.

For every £8 you pay into your online account, you'll get a free £2 added on by the government, up to the limits we mentioned above.

This money must then be spent on a registered childcare provider.

You need to be earning at least the minimum wage, for the equivalent of 16 hours a week - the same goes for your partner if you have one.

Self-employed workers are also eligible if they earn this amount too.

Both yourself and your partner will also have to earn less than £100,000 a year to qualify for the scheme, and you cannot have two accounts for the same child.

You usually have to be working to claim tax-free childcare, but there are some exceptions.

In terms of the criteria for your children, your child must be aged 11 or under and usually will need to live with you.

They'll continue to be eligible for tax-free childcare until September 1 after their 11th birthday.

If your child is disabled you may get up to £4,000 a year until they’re 17.

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