Getting Help with Childcare Costs

Universal Credit

Firstly, working tax credit was designed for people on low incomes, but it ended in April 2025 and has been replaced by Universal Credit. Although this form of funding is available to those who work and have no children, it is also extended to those who are self-employed and have dependents. If you apply for this funding, the total amount you will receive will depend upon your personal circumstances, including things like you income and the hours you work.

For those with children, there is an extra childcare element of Universal Credit that is available for use towards the cost of childcare and can cover a percentage of your costs up to a monthly limit: check GOV.UK for the current figures. Your can only apply for this if you are in paid work and if you are part of a couple, both of you must normally be in paid work.

Back to Work Grant Checker

Find out what help you can get with the costs of getting back into work, from travel and clothing to training and childcare.

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Universal Credit

Child tax credit used to be another option, but it ended in April 2025 and has been replaced by Universal Credit. This offers families the chance to receive funding, based on their income, to help towards the cost of raising their children. Whether a family is eligible to claim Universal Credit depends on their income and savings (check GOV.UK for the current thresholds), but you don't have to be working to claim.

The child element of Universal Credit will provide financial support until the child's 16th Birthday, although if the child goes on to further education, then the payments may continue: check GOV.UK for the current age limits.

Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.

work-related support through Jobcentre Plus

If you are a single parent then you should investigate the work-related support through Jobcentre Plus, which was introduced by the government to help those single parents who wish to go back to work. This programme allows parents to learn new skills and gain new training as well as financial help. If you have children then, although the New Deal programme has closed, you could still be eligible for help with childcare costs through Jobcentre Plus: check GOV.UK for what is currently available.

There is no reason to think, that as a new parent, your employer can’t offer you any support. You no doubt have worries about work, and if you do go back into employment, you will be planning how you are going to balance you work life with parental responsibilities.

Childcare vouchers were introduced to try and bridge this gap and help parents save money on the cost of childcare when they, if they, return to work.

Childcare Vouchers

The childcare vouchers scheme closed to new applicants in October 2018, though existing members can continue. New parents should apply for Tax-Free Childcare instead, which provides up to £2,000 per child per year.

So, for example, if you are already in the scheme as a regular tax payer and you receive £55 per week in childcare vouchers, you will make a saving on tax and National Insurance, and the exact saving depends on your tax rate: check GOV.UK for the current figures. The savings don’t stop here, as a family, if both you and your partner are already in the scheme, you can each receive up to £55 per week in childcare vouchers, potentially doubling the savings you could make.

The Next Step

Now that you have read through the advice above, you might want to put it into practice. Our Back to Work Grant Checker lets you find out what help you can get with the costs of getting back into work, from travel and clothing to training and childcare. Try it now →