Helping working families save money on childcare costs

This article is more than 2 years old

Fife Council, Citizens Advice and Rights Fife and Fife Gingerbread are partnering to spread the word that help is available for families through Tax-Free Childcare.

Tax-Free Childcare supports working families, including the self-employed, with childcare costs. If a working parent is earning at least the National Minimum Wage for 16 hours a week on average and under £100,000 per year, they could save up to £2,000 a year per child or £4,000 if their child is disabled.

Gary Peattie, Childcare Services team manager explained: “We’re urging families paying for childcare to make sure they’re not missing out on money they should be getting.

“If you use childcare, paying your approved provider via the Tax-Free Childcare scheme can save you money. For every £8 you deposit into the account, the Government will add £2. These funds are then used to pay your childcare provider directly from the account.”

Parents can use Tax-Free Childcare to pay for childcare from an approved provider:

Fife Gingerbread Strategic Manager, Laura Millar said: “Being a working parent is challenging in lots of ways, and particularly so for lone parents. The support through Tax-Free Childcare, can ease the financial burden for working families which will have a positive impact on the wellbeing of the whole family.

"We are delighted to support this campaign to raise awareness, so make sure if you know a working parent paying for childcare that you encourage them to check if they are eligible.”

Audrey Cunningham, Benefit Take Up Campaign Lead for Citizens Advice & Rights Fife is seeking to specifically reach families who are not receiving Universal Credit, Tax credits or Childcare Vouchers from their employer.

Audrey stated: “Consider Tax-Free Childcare as a payment method to your childcare provider in order to save some money each month or the additional top-up can help towards increased childcare costs during school holidays. If you are currently paying £400 per month for your childcare, you could reduce what you need to pay by around £100 per month, just by changing your payment method.”

For more information go to childcarechoices.gov.uk Local organisations can also help you decide and apply go to our.fife.scot/gethelp/childcare to find out more.