How can parents save on childcare costs?
Alpha Nurseries offers the following discounts:
- Sibling Discount - 5% discount of total bill while they both attend nursery.
- A Full time place discount of 10%.
Please ask for more details at your chosen nursery.
Parents can make large saving on childcare costs by using childcare vouchers. Two parents paying for childcare with vouchers can save up to £2,390.00 per year on their childcare costs! They can be used for out of school clubs too.
Using vouchers up to the value of £55.00 per week per person, parents can save on tax and NI contributions. If you are a standard rate tax payer you will save £916.00 per year if you elect to use childcare vouchers. If you are a higher rate tax payer you will save £1,195.00 per year.
Your employer needs to be pay part of your salary to you by way of childcare-vouchers which are then redeemable against the cost of the childcare. This is known as a “salary sacrifice” and the terms of your employer’s scheme must be approved by the Inland Revenue.
Many employers already offer these vouchers. If your employer doesn’t have one, they are very easy to set up, with several voucher companies to choose from., we will co-ordinate everything that needs to be done.
Child Tax Credit and Working Tax Credit
The Child Tax Credit is available to some families depending on income. This is paid in addition to Child Benefit.
The Working Tax Credit provides extra help to those parents in lower paid work with dependent children if they work at least 16 hours a week. The childcare element of the Working Tax Credit can pay up to 70% of the cost of registered childcare.
For more information about Tax Credits please contact the tax credit help line on 0845 300 3900 or visit their website https://www.gov.uk/claim-tax-credits
Free Childcare for Three and Four Year Olds and Eligible Two Year Olds
All three and four year olds and eligible two year olds are entitled to Free Early Education. The funding is available term time for 38 weeks per year and this can be stretched out over the whole year.
This is funded through the Nursery Education Grant. This means you can save on your on-going nursery costs or have some completely free session for your child.
The date you can claim will depend on when their birthday, please look at the table at the bottom of this page for dates.
Criteria for Free Early Education for Two Year Olds
You must be getting one of the following to be eligible for 2 year old funding:
- Income support
- Income based jobseekers allowance (JSA)
- income related Employment Support Allowance (ESA)
- Support through part 6 of the Immigration and Asylum Act
- The guaranteed element of State Pension Credit
- Child Tax Credit (but not Working Tax Credit) and have an annual income not over £16,190
- The Working Tax Credit 4-week run on (the payment you get when you stop qualifying for Working Tax Credit)
- Working Tax Credits and earn £16,190 a year or less Children are also entitled to a place if:
- They’re looked after by a local council
- They have a current statement of special education needs (SEN) or an education health and care plan
- They get Disability Living Allowance
- They’ve left care under a special guardianship order, child arrangements order or residence order
|Child’s birthday||When you can claim|
|1 January to 31 March||the beginning of term on or after 1 April|
|1 April to 31 August||the beginning of term on or after 1 September|
|1 September to 31 December||the beginning of term on or after 1 January|
For more information please go to https://www.gov.uk/free-early-education or speak to the nursery manager or you can contact your local children's centre.