New childcare subsidy: what it means for your family

Published: 21.03.14

A new childcare subsidy scheme extension, announced in the Budget, will enable working families to claim 20% of childcare costs up to a maximum of £2,000 per year. The extension supports costs for children up to the age of 12 and disabled children up to 16.
New childcare subsidy: what it means for your family

Who's eligible?

  • Two parent families where both parents work
  • Single working parents
  • Parents not in receipt of Working Tax Credit or Universal Credit equivalent (childcare costs for this group are supported through a different scheme)
  • Each parent must earn at least £50 per week and a maximum of £150,000 annually

How will it work?

Parents will set-up an online account to buy childcare vouchers, and gain 20p for every 80p they spend. For example, if you pay £1,000 you will have a voucher to the value of £1,200.

The vouchers can only be used for Ofsted regulated childcare.

One parent can make the claim, but if they are part of a two-parent family they will need to give details of their partners income.

When does the new scheme kick-in?

It will be phased in from autumn 2015.