On 15th March 2023, the Government announced changes to help with childcare costs for working parents, via a range of new measures.

Working parents in England will be able to access 30 hours of subsidised childcare per week, for 38 weeks of the year, from when their child is 9 months old to when they start school.

This will be rolled out in stages:

From April 2024, all working parents of 2-year-olds can access 15 hours funded childcare per week.

From September 2024, all working parents of children aged 9 months up to four years old can access 15 hours funded per week.

From September 2025 all working parents of children aged 9 months up to four years old can access 30 hours funded childcare per week.

Non working families with children aged 2 and over can access Free Early Year’s Education Funding from the start of the term after their 2nd birthday.

Parents/carers cannot apply before the start of the funding period in which the child’s second birthday occurs.

You can qualify if one parent or carer is receiving one of the following:

-Income Support

-Income-based Jobseeker’s Allowance (JSA)

-Income-related Employment and Support Allowance (ESA) Universal Credit

-Tax credits and has an annual income of under £16,190 before tax

-The guaranteed element of State Pension Credit support through part 6 of the Immigration and Asylum Act

-The Working Tax Credit 4-week run on (the payment you get when you stop qualifying for Working Tax Credit)

Or

A 2-year-old can also get free early education and childcare if any of the following apply:

-They are looked after by a local authority

-They have a current statement of special educational needs (SEN) or an education, health and care (EHC) plan

-They get Disability Living Allowance

-They’ve left care under a special guardianship order, child arrangements order or adoption order. 

All three and four year olds are entitled to 15 hours of free nursery education for 38 weeks or stretched for the equivalent number of hours across more weeks per year. This is a universal entitlement for all children and applies until they reach compulsory school age (the term following their fifth birthday).

Some families may be eligible for extended funding (an extra 15 hours - taking you to 30 hours per week)

You can apply for the extended free entitlement for 3 and 4 year olds if:

-You and your partner (or the sole parent in a lone parent family), are in work with each parents earning, on average, a weekly minimum equivalent to 16 hours at national minimum wage (NMW) or national living wage (NLW) and not more than £100,000 or more for at least one parent per household per year.

This includes self-employed parents and those parents on zero contracted hours who meet the criteria

The government intends that the additional entitlement should be available in the following circumstances: 

 -Both parents are employed but on or both parents is temporarily away from the workplace on parental leave or adoption leave

-Both parents are employed but one or both parents is temporarily away from the workplace on statutory sick pay 

-One parent is employed and one parent has substantial caring responsibilities based on specific benefits received for caring

-One parent is employed and one parent is disabled incapacitated based on receipt of specific benefits

HOW TO CHECK YOUR ENTITLEMENT...

Use the Childcare Calculator to see if you could qualify for the extended free entitlement

Select "keep me updated" in the Childcare Calculator to ensure you receive extended free entitlement updates

You will receive an email informing you when you can sign up to 30 hours

Next steps...

Once you've successfully applied for the extended free entitlement....

You will receive a letter confirming your free entitlement from HM government informing you of your eligibility code for each child

You need to take your eligibility code along with your National Insurance Number and your child's DOB to your nursery manager

Sign the parent declaration form given to you by your nursery manager

The funded hours can only be used with a registered childcare provider. There are some rules for using the entitlement...

Government has limited session times between 6am - 8pm

The government has restricted funded hours to a maximum of 10 funded hours per day to protect children's wellbeing and support a positive early education experience. 

The funded hours can be split between a maximum of two childcare providers (for example a pre-school and a nursery)

Funded hours can be stretched throughout the year (up to 52 weeks) and not just restricted to 38 weeks.

Working parents can benefit from significant tax and NI savings of up to £933 per year using childcare vouchers, and up to double the amount if both parents are part of a childcare vouchers scheme.

To benefit from the scheme, parents simply exchange a part of their salary for the same amount of childcare vouchers and use them to pay their childcare fees.

Each parent can request up to £243 a month – or £55 per week – in childcare vouchers; this value is non-taxable and exempt from National Insurance contributions.

Speak to your employer to find out if they currently offer childcare vouchers; if not ask them to get in touch with a voucher provider today.

At Bumbles we accept all childcare vouchers, if your employer uses a company we are not registered with, this can be set up in a few hours.

Childcare Vouchers ceased trading from September 2018, however if you already have these set up at your workplace you are more than welcome to use them towards your childcare.

Tax Free childcare is a government scheme introduced to help your family with the cost of childcare and will support you into work or to increase your hours at work, should you wish to. You could get up to £2,000 government support per child per year, (a maximum of £500 per child per quarter) towards your childcare costs.

You can apply for Tax-Free Childcare if:

You and your partner (or the sole parent in a lone-parent family), are in work with each parent earning, on average, a weekly minimum equivalent to 16 hours at national minimum wage (NMW) or national living wage (NLW) and not more than £100,000 or more for at least one parent per household per year.

Your child is less than 12 years old (or less than 17 years old if they have Special Educational Needs) 

The child you are applying for usually lives with you

You work in the UK (if you’re a Crown servant or member of the HM Armed Forces posted overseas you can still get Tax-Free Childcare if your childcare provider is UK regulated)

If you are self employed you are entitled to a start-up period during your first 12 months of self-employment. During this time, you don’t have to earn the minimum £115 a week to be eligible for Tax-Free Childcare. However, you cannot use Tax-Free Childcare at the same time as receiving vouchers, Universal Credit or Tax Credits.

To check your eligibility...

Use the Childcare Calculator to see if you qualify for Tax-Free Childcare

Select “keep me updated” in the Childcare Calculator to ensure you receive Tax-Fee Childcare updates

You will receive an email informing you when you can sign up to Tax-Free Childcare

You will need to set up a Tax-Free Childcare account

Once you set up your Childcare account, you will receive a welcome pack

Once you’ve successfully applied for your online account, you; 

Can set up payments from your bank to your childcare account which will receive the government top up

Set up payments to your registered childcare provider(s)

Will receive a BACS reference number per child which you must provide to us in order for us to allocate payments against your childcare fees

Your Childcare Account...

You and others can pay into your childcare account as and when you like. How much you pay into your Childcare Account, and when, is up to you. You can make one-off payments or set-up a standing order to make regular payments into your Childcare Account.

Every 3 months, you will receive a reminder to reconfirm your eligibility, simply tick the box to confirm that your details have not changed. If you do not reconfirm your eligibility, you will no longer receive government top ups until you do so.

If your circumstances change or you no longer want to pay into the account, then you’ll be able to withdraw the money you have built up. If you do, the government will withdraw its corresponding contribution.

Parents will be able to apply for both Tax Free Childcare and the extended entitlement through a joint application developed by HMRC.

Useful information...

You can use the Childcare Calculator to see if you are eligible and would benefit from Tax Free Childcare by going to:

www.gov.uk/childcare-calculator

If you want to opt into Tax-Free Childcare and are currently receiving other support or benefits, you may need to take action:

If you are getting childcare vouchers, you will need to tell your employer that you no longer want them

If you are getting Universal Credit, you will need to ask Jobcentre Plus to terminate your claim

If you are getting tax credits, your payments will automatically stop when you get Tax-Free Childcare

For more information about Tax-Free Childcare as a parent, go to www.gov.uk/government/news/tax-freechildcare-

10- things-parents-should-know

For any other enquiries, please call the Childcare Service Helpline on 0300 123 4097

DISCOUNTS:

-5% Discount is available for all NHS and emergency services

-10% Discount offered for siblings (from the lowest fee)

-Term time only, shift pattern and varied sessions available

-Cash back when you recommend a friend!