Martin Lewis reveals how to get tax-free childcare over summer holidays

Martin Lewis reveals how to get free childcare over summer holidaysITV

Transcript

00:00There are 1.3 million people eligible for it, and only 500,000 claim it.

00:06Over 800,000 that are eligible don't claim, and it can be really substantial money.

00:10I would actually rename it, and I'm campaigning to do so, something more like

00:14help to pay for childcare, which is a better description.

00:17Now, the reason it's important right now is while you can use it for nursery care

00:21and childminders throughout the year, if you're going to send your kids over summer to, say,

00:26could even be a football camp or a drama camp or a summer camp, as long as it is

00:31Ofsted or Early Years Register or Childcare Register regulated, so regulated by one of

00:37those type of regulators, then you can use the tax-free childcare scheme.

00:42Now, the way it works, it's for those who are under 11.

00:46In fact, as long as you're, it stops the September after your 11th birthday.

00:51If you're paying for childcare and you're not on universal credit or tax credits,

00:54where you should be getting childcare help that way, then you, for every 80p you save in it,

01:0120p is added.

01:02So if you save 80 quid, 20 pounds is added.

01:04If you save 800 pounds, 200 pounds is added, up to a maximum gain of 2,000 pounds of money

01:09from the state each year.

01:11And then you use that to pay for childcare.

01:13So if you were going to pay 800 quids worth of childcare costs this summer, well, it would

01:17only cost you just over 600 pounds if you use the tax-free childcare scheme.

01:22Not everybody can use it.

01:24If you're, you have to be working.

01:25So if you're a couple, both of you have to be working, earning at least national minimum

01:29wage equivalent for 16 hours a week and earning no one, neither of you can earn over 100,000

01:35pounds.

01:35If you're a single parent, then you have to be working and you can't earn over 100,000

01:39pounds and you have to be earning 16 hours of national minimum wage equivalent a week.

01:44So look, lots of D's to dot and T's to cross, but it's actually, if you're eligible, it's

01:48a really simple scheme.

01:49It's free money towards childcare.

01:50It works in the summer.

01:52It's called, stupidly, I want it to be changed, but it's called tax-free childcare.

01:59Go look it up.