Help paying for childcare

This provides a top up to wages for those on low incomes. Extra support is available for working parents (see section below on the childcare element) and for disabled people in work. Most sections of the Working Tax Credit are paid through pay packets, or directly to those who are self employed. The amount people receive depends on their circumstances.

Childcare element of the Working Tax Credit

Extra help is available through a childcare element within the Working Tax Credit for working parents to assist with the cost of registered and approved childcare. It can offer up to 80% towards the costs of childcare up to a maximum level of £175 per week for one child and £300 per week for two or more children – so if you have one child in childcare you could receive up to a maximum of £122.50 per week and with two or more children in childcare you could receive up to £210 per week.

To be eligible for the childcare element of Working Tax Credit lone parents must work 16 hours or more per week for couples, both partners must work 16 hours or more or one partner must work 16 hours or more per week if the other is incapacitated, in hospital or in prison The childcare element of the Working Tax Credit is paid direct alongside Child Tax Credit payments to the main carer, rather than through the pay packet.

Find out more

For more information on the Child Tax Credit and/or Working Tax Credit, to find out if you are eligible for help call the Tax Credit help line on 0845 300 3900.

Working Tax Credits

Parents can receive help towards the general costs associated with bringing up children and could be eligible for this help whether you are working or not. The amount of help parents’ receive will depend on their circumstances. Families with incomes of up to £59,000 could still be eligible for some help, and this income level rises to £66,000 for those families who have a child under the age of one.

Child Tax Credit is paid directly into the bank account of the main carer, rather than through the wage packet.