As many families across the Borough prepare for their child to start school for the first time this September, Bedford Borough Council is encouraging working parents to check whether they could benefit from the Government’s Tax-Free Childcare scheme, which could save them up to £2,000 a year per child on childcare costs.
Starting school is an exciting milestone, but it can also be a time of new expenses and arrangements, particularly when it comes to wraparound childcare before and after the school day. Tax-Free Childcare offers flexible financial support that can be used towards a range of approved childcare, including childminders, breakfast clubs, after-school clubs, and holiday care.
Through the scheme, for every £8 a parent pays into their Tax-Free Childcare account, the Government contributes an additional £2. This can add up to as much as £500 every three months, helping to make childcare more affordable throughout the year. If your child is disabled and usually lives with you, you may get up to £4,000 a year until 1 September after their 16th birthday. They’re eligible for this if they get Disability Living Allowance, Personal Independence Payment, Armed Forces Independence Payment, or are certified as blind or severely sight-impaired.
To be eligible for the scheme, parents must have a child aged 11 or under, or up to 16 if the child is disabled, and both they and their partner, if they have one, must earn at least the equivalent of 16 hours per week at the National Minimum or Living Wage. Each parent must also earn less than £100,000 per year and must not be in receipt of Universal Credit or childcare vouchers.
The account is easy to manage and gives parents the freedom to pay in money when they choose, use it immediately, or save it for when it’s needed. Any unused funds can be withdrawn at any time.
Councillor Jane Walker, Portfolio Holder for Valuing Families: Children’s Services, said: “We know that the start of school can be a big adjustment for families, not only emotionally but financially. Tax-Free Childcare is a valuable tool that can make a real difference to working parents in Bedford Borough. I encourage all eligible families to take advantage of this support and explore how it can help them manage the cost of childcare throughout the school year.”
Families can check their eligibility and sign up for Tax-Free Childcare by visiting https://www.gov.uk/tax-free-childcare