Parents missing out on childcare cash entitlement

As the recession begins to bite, money worries are amongst the biggest concerns for parents across the UK - yet many remain unaware that they could be entitled to thousands of pounds from the Government to help with childcare costs.

The crunch is clearly having a big impact on household expenditure; a recent You Gov poll revealed that over half of us with children (57%) feel unable to save any money, and nearly half (47%) of us are not totally sure if we can even afford to pay the bills over the next six months. It's therefore hardly surprising that over a third (35%) of us are kept awake at night with money worries. However many families could be entitled to a range of financial support that will help with the cost of their childcare.

Every 3 and 4 year old is entitled to at least twelve-and-a-half hours of early learning each week from a range of childcare providers including nurseries and pre-schools. By next year this figure is set to increase nationally to 15 hours a week, and may already be available in your local authority.

For those working more than 16 hours a week, up to 80% of your childcare costs could be met through tax credits. Parents with one child could get back up to £140 a week, while parents with two or more children could get back up to £240 a week.

The help isn't just limited to those with pre-school children, parents with older kids can also use tax credits to pay for childcare and activities delivered through school - such as breakfast, after-school groups and holiday clubs.

Many parents are also unaware that some employers offer a childcare voucher scheme that allows parents to pay for their childcare from their pre-tax income. For a basic rate taxpayer this could mean that for every £100 of income they could receive £130 worth of childcare vouchers.

Martin Lewis of MoneySavingExpert.com comments: "There are a number of options to help families with their childcare costs, more options than many people think. Taking advantage of what's on offer from tax credits to childcare vouchers could save parents £1,000s each year. Families are under a huge amount of financial pressure at the moment. Many are unsure whether their household incomes will be enough to cover bills in the next six months. In the current climate there is a lot of uncertainty and stress for the average family - which makes it all the more important that people claim what they are entitled to.

A little bit of time is needed to check entitlements and how to apply, but it is worth it. The time spent can produce some serious cash for families. It's also worth remembering that the financial help for childcare is just one benefit. Good quality childcare can really benefit children too – they have fun learning and playing with other children which can give them a head start when they begin school."

For more information about financial help for childcare and the free early learning entitlement visit direct.gov.uk/parents