Summer Holiday Childcare

July 2018
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Working parents may be less enthusiastic about the long school holidays than their offspring. Organising childcare can be expensive and tricky. Here are two Government backed schemes to help parents and other family members provide childcare.

Keep It In The Family

Many working parents rely on family members to help fill the gaps when they can’t take time off work. If those family members are not working themselves, are over 16 but under State pension age, they may be eligible for a boost to their State pension.

A little known benefit, the Specified Childcare Credit, is available and can be claimed to top up the carers National Insurance credits for State Pension. This can increase their entitlement up to the maximum of £164.35 per week.

To be eligible the child must be under age 12. The working parent must be eligible to receive child benefit and be working and paying National Insurance, as an employee or self employed person. Those who have waived child benefit to avoid the tax payable, once earnings exceed £50,099, can also claim this credit by applying for child benefit but then waiving the payment of it.

The Government estimate that 100,000 individuals are eligible for this benefit, but so far only 19,000 have claimed. Those who have missed out can backdate claims to 2011. The form required, CA 9176, is on the Government website.

Clubs and Activities

Another way of keeping the kids occupied is to send them to clubs and organised activities or a registered childminder. Many schools and clubs have registered to be eligible for the Tax Free Childcare scheme which replaced childcare vouchers.

This is available to working parents in addition to 30 hours of free childcare. It is available for children under age 12, or under age 17, if disabled.

To be eligible both parents must be working and must each earn £125 per week or more. Those with earnings in excess of £100,000 from one parent or the partner of a parent are ineligible for this benefit.

For every £8 paid by the parent the Government tops this up to £10. Up to £10,000 per year can be paid in to a Tax Free Childcare account which means up to £2,000 per year is paid by the Government, in quarterly instalments of up to £500.

This can be used to fund care and activities with, nannies, child minders, schools and clubs which have registered under the Government scheme.

Hopefully most working parents will also get some time off to enjoy the long hot summer and some quality time with their children.

Kay Ingram
Director of Public Policy, LEBC

LEBC Group Ltd is not responsible for accuracy and may not share the author’s views. Tax rates and allowances may change in future.

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