An extra £2,000? It’s child’s play!

Parents, take note! There’s a new kid on the block that could mean up to £2,000 to help towards childcare costs. The Tax-free Childcare scheme launches this month, and is to be gradually rolled out to everyone across the year. Yet with a range of childcare help already out there, you need to ensure you’re picking the right one. First, see whether you’re due free childcare. If not, go for cash towards it, or, failing that, a scheme that discounts the cost. here’s a quick rundown of your options. ✱ For full information see mse.me/childcarecosts.

1 Are you eligible for what will be up to 30 hours a week of FREE childcare? Currently, in England for at least 38 weeks a year, everyone with a three or four year old (or two year old if on a low income), is entitled to 15 hours a week of free state or private nursery childcare. From september 2017, this will increase to 30 hours a week, but only if you earn at least £115 a week (each, if in a couple) but neither parent can earn over £100,000 a year. similar schemes are available across the UK.

2 Are you entitled to childcare tax credits? If you pay for childcare for a child up to age 15, and are a single parent working 16+ hours a week, or a couple Both working 16+ hours a week, with total household income under £40,000, you should definitely check if you’re entitled to childcare tax credits. you may not be, but it is worth calling the tax credit hotline on 0345 300 3900 to

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It’s worth noting that technically the real name of childcare tax credit is the ‘childcare element of working tax credit’ (totally different from child tax credits). If you’re entitled to childcare tax credits, then go for it, as it’s free cash – unlike the following two schemes, which are discounts. If you get tax credits you’re not then allowed to get tax-free Childcare; and while you can get Childcare Vouchers, doing that may reduce your tax credits, so isn’t worth it.

3 You could get cheaper childcare via vouchers – but sign up soon. the Childcare Vouchers scheme is run via employers, and you can only do it if your employer offers it. luckily, many do, especially bigger firms. Usually, your employer will let you trade in salary for vouchers. For example, a basic-rate taxpayer can swap £1,000 of salary, which after tax and national insurance is only £700-ish in your pay packet, for £1,000 in childcare vouchers. Full help on this at mse.me/childvouchers.

any parent can do this, but vouchers are gradually being phased out due to the launch of tax-free Childcare. If you’re not part of a scheme by april 2018, you won’t be able to sign up after, so don’t miss out. Even if you don’t need the vouchers, just get a small amount to start, then you can increase it later.

4 Discounted childcare via the new Tax-free Childcare scheme. the new tax-free Childcare scheme is being rolled out to parents of the youngest children this month and should be available to all parents by the end of 2017. as it’s nothing to do with your employer, it’s likely people who couldn’t get vouchers, including the self-employed, will welcome it.

For every 80p you put in a special account to pay for childcare at the Governmentbacked National savings and Investments scheme (NS&I), the Government will add 20p up to a total of £8,000 per child. so that’s £2,000 added.

yet it’s only available if you earn over £115 a week (both of you must, if a couple) and neither earns over £100,000. Full info on the new scheme at mse.me/taxfreechildcare.