How to save money on childcare this summer

Summer holidays can be a tricky time for working parents. 

With schools closed for six weeks, many families need to find reliable childcare - and fast. 

But as every parent knows, those costs can add up quickly.

Thankfully, help is available.

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

Universal credit: Claim back up to 75% of childcare costs

If you get universal credit and pay for childcare for a child under 17, you might be able to claim back up to 85% of your childcare costs.

That’s a maximum of:

• £1,031.88 for one child
• £1,768.94 for two or more children

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

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

You’ll need to report your childcare costs in advance 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

Even if you’re not on universal credit, you might still be able to save. 

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    

It’s important to stress that you can’t use tax-free childcare if you're already claiming universal credit or receiving childcare vouchers. 

So it's worth comparing options to see which one gives you the most support.

What other options are available?

If you’re concerned about childcare costs, then there are more practical ways to keep your expenses down…

Book early

Booking childcare as far in advance as possible can help you save money and reduce stress.

Many holiday clubs and childcare providers offer early bird discounts for parents who reserve their place ahead of time. 

Some may also provide reduced rates for full-week bookings or when multiple weeks are purchased together. 

Share with other parents

Plenty of other parents will be in the same situation as you, so why not discuss teaming up to make childcare more affordable for everyone?

By rotating care responsibilities, you won’t have to fork out for as many days of paid childcare.

It can also make holidays more fun for the children, as it gives them more variety and the chance to spend time with their friends.

Check local council schemes

Many local councils offer support schemes for families on low incomes, especially during school holidays. 

These may include subsidised holiday clubs, free activity programmes, or additional help for families receiving benefits like universal credit or free school meals. 

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

You can find the contact details for your local authority here.

It’s also worth speaking to your school’s family support worker to see what help is available in your area.

Use flexible working

It’s worth asking your employer if you can work from home for part of the week or change your hours throughout the holidays.

That could give you the freedom to care for your child without having to use your own precious annual leave or taking unpaid leave.