Under the Government's Early Years Programme, all three and four year olds are entitled to three terms of part time education from the term following their third birthday. The grant is for a maximum of 15 hours per week. Parents must complete a nursery claim form and provide a copy of their child's birth certificate. Natures Nursery will do the rest. Natures Nursery receives The Nursery Education Grant directly and your monthly fees are adjusted accordingly.
Please also check with your employer as they may offer the Government Voucher Scheme or other childcare schemes which can provide payment or part payment of your child's monthly fees, further reducing your nursery costs.
Childcare Voucher Scheme - Key Facts
The Childcare Voucher scheme is designed to allow you the flexibility and freedom to choose the method of childcare you prefer, whilst saving significant amounts on the actual cost of this care.
The scheme is very easy to participate in and involves you receiving part of your remuneration (up to a maximum of £55 per week or £243 per month) as Childcare Vouchers. This amount of your salary does not attract Tax or National Insurance contributions and therefore becomes a saving for you, leaving you with more disposable income. The amount you save is dependant on your individual circumstances:
- A basic rate taxpayer (20%) can save up to £904* per year
- A higher rate taxpayer (40%) can save up to £1196* per year
What's more, both parents can request to take part of their remuneration as Childcare Vouchers, therefore doubling the saving. The Employer is also exempt from NI on this amount - saving up to £373 per year per employee. Childcare Vouchers can be used at ANY registered or approved childcare provider for children up the age of 15. If your employer does not currently offer this type of scheme it may well be worth discussing.
Free Childcare for Training and Learning
for work - Key Facts
This is a new Government initiated childcare scheme specifically aimed at providing childcare support for low-income families with dependent children, where one parent is working and the other parent aged 20 years or over, is out of work and looking to participate in learning. The household income needs to be £20,000 or less in the previous tax year.
Free Childcare for Training and Learning for Work will pay childcare costs of up to £175 per week per child. The childcare costs will be made directly to the childcare provider. For further information about this scheme please log on to www.direct.gov.uk/en/EducationAndLearning.
Child Tax Credits and Working Tax
Credits – Key Facts
You can claim two tax credits, Child Tax Credit and Working Tax Credit - payable from April 2003.
Couples must make a joint tax credits claim. If you are part of a couple, you cannot decide to claim as a single person. Child Tax Credit is for people who are responsible for at least one child or qualifying young person. Child Tax Credit is paid direct to the person who is mainly responsible for caring for the child or children. If you are a lone parent you will receive the payment. Child Tax Credit can be paid to workers who continue to pay UK National Insurance Contributions when posted from the UK to work in another country in the European Economic Area.
Working Tax Credit is for people who are employed or self-employed (either on their own or in a partnership), who
- Usually work 16 hours or more a week
- Are paid for that work, and
- expect to work for at least 4 weeks
and who are...
- aged 16 or over and responsible for at least one child, or
- aged 16 or over and disabled, or
- aged 25 or over and usually work at least 30 hours a week .
Working Tax Credit is paid to the person who is working 16 hours or more a week. Couples, if both of you are working 16 hours or more a week, must choose which one of you will receive it. You cannot receive Working Tax Credit if you are not working.
As part of Working Tax Credit you may qualify for help towards the costs of childcare. If you receive the childcare element of Working Tax Credit, this will always be paid direct to the person who is mainly responsible for caring for the child or children, alongside payments of Child Tax Credit.
The amount of tax credits you receive will depend on your annual income. Please see Tax Credits Website for further information.