Tax credits ended on 5 April 2025

No more payments can be made and all tax credit accounts will close.

If you’re eligible for Universal Credit or Pension Credit instead, you’ll be sent a letter.

Universal Credit to help pay for childcare

If you are going back to work or increasing your hours, you may be able to get up to 85% of registered childcare costs.

How much will I get?

There is a cap on the maximum amount you can get, which is currently 85% of your childcare costs. The most you can get for each child is:

• one child: £1,031.88 per month
• two or more children: £1,768.94 per month

How much you actually get depends on how much you pay for childcare and your income.

How to apply

You can claim childcare costs for all the children you’re responsible for, until the 31 August after their 16th birthday.

For more information on Universal Credit and how to apply.

Tax-Free childcare

You may be able to get tax-free childcare if you meet certain conditions.

Who can get it?

• You must be working 16 or more hours per week and
• expect to earn at least the National Minimum or Living Wage for the next 3 months
• Your income must be less than £100,000 per year
• You can claim for children up to the 1 September after their 11th birthday
• Your child is also eligible until 1 September after their 16th birthday if they have a disability and get Disability Living Allowance, Personal Independence Payment, Armed Forces Independence Payment, Child Disability Payment or are certified as blind or severely sight-impaired
• Your childcare provider needs to be signed up to the scheme

If you are self employed your earnings can be averaged out over the year. You can still get help if you do not earn enough but started your business less than 12 months ago.

You cannot get tax-free childcare if you are already receiving tax credits or Universal Credit. If you are getting one of these, and you apply for tax-free childcare, it will stop, and you may be financially worse off. 

How much you will get

For every £8 you spend on childcare the government will refund £2 into an account, which you need to open online. Sign into your childcare account.

Up to £2,000 per year can be refunded for each child, or up to £4,000 if your child has a disability.

How to apply

Applications are made online.

More information on tax-free Childcare

Jobcentre Plus: Flexible Support Fund

The Flexible Support Fund (FSF) from Jobcentre Plus is money that can be used to help pay for something you need to start or stay in work.

This is a discretionary fund so how much you get will depend on how it is used within each Jobcentre Plus.

Ask your work coach how to apply for help from this fund to pay for childcare that would enable you to take, or stay in, a job.

Help to pay for childcare if you are a student

If you are studying full time you can apply to SAAS for the Lone Parent Childcare Grant to help pay for registered childcare. Find out more about this fund.

If this is not enough, or you are not eligible for it, you can ask for help from the college or university discretionary funds.

Ask at the college or university for details.