How to keep childcare costs down this summer

How much do you expect to pay for childcare this summer? If it’s more than you can afford, it might be time to see what support is available.

According to Coram Family and Childcare, summer holiday childcare costs have gone up by 5% on average in the last year.

That means working parents are typically paying £191 per child each week - or £1,145 for the six-week summer holiday.

Mums and dads are also paying premium prices for childcare at this time of year.

In fact, six weeks of a holiday club is costing families an average of £726 more than six weeks of after-school childcare.

Help is available

So if you’re a family struggling with childcare costs, what options do you have?

Well, if you’re claiming universal credit or are part of a working family, help is available that could you save you a significant amount.

If you get universal credit and pay for approved childcare for a child aged 16 or under, you could claim back up to 85% of your childcare costs. 

That works out to a maximum of:

• £1,071.09 for one child
• £1,836.16 for two or more children

This support is available until 31 August after your child's 16th birthday.

To qualify, your childcare provider must be Ofsted-registered, and this can include:

• nurseries
• childminders
• holiday clubs
• after-school clubs

After paying your childminder, you’ll need to report your childcare costs to universal credit and provide proof of payment, such as receipts. 

You could then get some of this money back through your next universal credit payment.

Tax-free childcare

Support is also available to people who don’t claim universal credit.

Tax-free childcare can be used to pay for approved childcare, including childminders, wraparound care, after school clubs or school holiday care.

For every £8 you deposit in a tax-free childcare account, the government tops it up by £2.

So you could get up to £500 (or £1,000 if your child is disabled) every three months to put towards your childcare costs.

Parents can get financial support of up to £2,000 a year per child (or £4,000 if their child is disabled).

After you’ve opened an account, you can deposit money and use it straight away or leave it until you need it.

You can also withdraw unused money in the account whenever you like.

You could be eligible if you:

• have a child or children aged 11 or under (or up to 16 if your child has a disability)
• you and your partner (if you have one) earn or expect to earn at least the national minimum wage or living wage for 16 hours a week, on average  
• each earn a maximum of £100,000 a year 
• don’t receive universal credit or childcare vouchers    

We should point out though that you can’t use tax-free childcare if you're already claiming universal credit or receiving childcare vouchers. 

So compare different options to see which one could give you the most support.

What else can I do to save money?

As well as seeing what support is out there, there are steps you could take yourself to cut costs.

Book early

Many holiday clubs and childcare providers offer early bird discounts to parents who book in advance.

So reserve your child’s place as far in advance as you can.

Not only will that save you money, it also helps to ease stress.

You might also be able to take advantage of reduced rates for full-week bookings or when multiple weeks are bought together. 

Join forces with other parents

Lots of other parents will be facing the same financial pressures, so it’s worth speaking with them to see where you can share the load.

For example, you could rotate care responsibilities, so each family doesn’t have to pay for as many days of paid childcare.

Teaming up with other parents could also make the summer holidays more exciting for the kids, as it gives them a chance to spend time with their friends and not get sick of seeing the same four walls at home.

Check local council schemes

Many local councils offer support schemes for families on low incomes, such as:

• subsidised holiday clubs
• free activity programmes
• extra help for families receiving benefits like universal credit or free school meals

Councils may also list accredited, affordable providers on their websites. 

Find out how to get in touch with your local council here.

You could also speak to your school’s family support worker to see what support is available in your area.

Use flexible working

If you’re in work, ask your manager if you can work from home for part of the week or change your hours during the summer holidays.

You’ll then have more freedom to look after your child without having to take unpaid leave or use up annual leave.