Understanding childcare support: childcare vouchers and tax-free childcare at Grace Dieu Manor Park Nursery and Charles Booth Pre-School

At Grace Dieu Manor Park Nursery and Charles Booth Pre-School, we know how important it is for families to access affordable, flexible, and high-quality childcare. That’s why we’re here to help you understand the childcare support options available, including the Tax-Free Childcare scheme and Childcare Vouchers.

While Childcare Vouchers are no longer available to new applicants, many families still use them to help cover their childcare costs. We want to assure all families that we accept childcare vouchers, and they can be used for nursery fees and our holiday clubs.

For those new to childcare support or no longer eligible for vouchers, the government now offers Tax-Free Childcare – a scheme designed to help working parents benefit from tax efficiencies in order to save money on childcare. For every £8 you pay into your Tax-Free Childcare account, the government adds £2 – up to £2,000 per child per year, or £4,000 if your child has a disability.

Childcare Vouchers vs Tax-Free Childcare

If you're comparing Childcare Vouchers vs Tax-Free Childcare, it’s important to know that vouchers were part of the Employer-Supported Childcare (ESC) scheme, which closed to new entrants in 2018. You can continue using them if you’ve stayed with the same employer and haven’t taken a break. On the other hand, Tax-Free Childcare is open to all eligible working parents, including the self-employed.

You can’t use both schemes at the same time, so it’s worth calculating which one saves you more. Generally, Tax-Free Childcare benefits lower to middle-income families, especially those with younger children and higher childcare costs.

15 Hours Funded Childcare

From 9 months of age, many children are now entitled to 15 hours of funded childcare per week during term time. This support helps families manage early years childcare costs sooner than ever before. From September children aged 9 months upwards are entitled to 30 hours funding for working parents. 

Some working families may also qualify for up to 30 hours of funded childcare for 3- and 4-year-olds. These funded hours can be used alongside Childcare Vouchers or Tax-Free Childcare to cover any additional hours or costs, making quality childcare more accessible and affordable.

Remember, while often referred to as "free," these hours are funded by the government and may not cover the full cost of a childcare place, especially when accounting for meals, outings, or extended hours.

Further Help with Childcare Costs

Families on Universal Credit or with low incomes may also get further help with childcare costs. Visit gov.uk for the most up-to-date guidance.

FAQs

Do you accept childcare vouchers?Yes, both Grace Dieu Manor Park Nursery and Charles Booth Pre-School accept childcare vouchers.

How do Childcare Vouchers work?They are provided through your employer, allowing you to pay for childcare before tax is deducted, saving you money.

What counts as childcare?Registered nurseries, pre-schools, childminders, and holiday clubs.

Are vouchers my best choice?If you're already enrolled and meet the conditions, they might be.

Tax-Free Childcare may offer more savings, especially with multiple children.

Can I have childcare vouchers and sign up for Tax-Free Childcare?No, you must choose one.

Are childcare vouchers or is Tax-Free Childcare better for me?It depends on your circumstances. Use the government’s childcare calculator to compare.

What you can use Tax-Free Childcare for?Nursery fees, after-school clubs, holiday clubs, and more.

Who is entitled to childcare vouchers?Only those who joined before October 2018 and remain eligible.

What has replaced childcare vouchers?Tax-Free Childcare is the new government scheme.

Do companies still offer childcare vouchers?Only to existing participants; no new entrants.

Why have childcare vouchers stopped?The government replaced them with Tax-Free Childcare to simplify support.

Can I get childcare vouchers on Universal Credit?No, but Universal Credit offers its own childcare support.

How do I apply for childcare vouchers?Through your employer, if you're still eligible.

How do I apply for childcare vouchers if I am separated or divorced?Each parent needs to apply individually through their employer.

How can I get further help with childcare costs?Visit gov.uk for full eligibility criteria and tools.

Can I use childcare vouchers for the holiday club?Yes, we accept them for holiday clubs too.

For more help or to discuss your childcare support options, send us an email, we're happy to guide you through every step.