Money matters

There is a lot of information on support and funding that is available for covering childcare costs. The main areas of support are:

For further information, please contact the Children's Information Service by using the contact details opposite or by texting on 07781 480 070.

Child Trust Funds

Child Trust Fund (CTF) is a new savings and investment account for children. Children born on or after 1st September 2002 will receive a £250 voucher to start their account. The account belongs to the child and can’t be touched until they turn 18, so that children have some money behind them to start their adult life.

Your child is eligible for the Child Trust Fund account as long as:

your child was born on or after 1st September 2002
your child lives in the UK
you receive Child Benefit for your child
your child is not subject to immigration control

A voucher for £250 will be sent to you once you have received you Child Benefit award. You must then open a CTF account.

Key Facts about the Child Trust Fund

neither you nor your child will pay tax on income and gains in the account
a maximum of £1200 each year can be saved in the account by parents, family or friends
children in families receiving Child Tax Credit (CTC), with a household income below £13,910, will receive an extra payment of £250 paid directly into their CTF account
money cannot be taken out of the CTF once it has been put in – once your child is 18 they will be able to decide how to use the money
the Government will make a further contribution when your child is seven - the amount has not been decided yet
it will not affect any benefits or Tax Credits you receive

For more details visit the Child Trust Fund website: www.childtrustfund.gov.uk

Paying for Childcare

There are different forms of funding and support that are available to help with the costs of childcare.

Nursery Education Fund

Nursery education funding is available to all three and four year olds and covers the cost of up to five sessions (a session is a minimum of 2 ½ hours) per week of pre-school education during term time.

Child Tax Credit and Working Tax Credit

Child Tax Credit is an income related benefit for families with dependent children. You can claim if you are aged over 16 and you are responsible for a child or young person who normally lives with you. You can have an income of up to £58,000 per annum (£66,000 if you have a child under one) and still get some Child Tax Credit.

Families with children are in receipt of Disability Living Allowance will receive additional elements.

Working Tax Credit is an income related benefit paid to working families with dependent children in low to middle income brackets.

To claim working tax credit your income must be low enough, you must be working at least 16 hours per week and be responsible for a child or young person, who normally lives with you.

Help with childcare costs

Help with childcare costs can be awarded up to a maximum of 70% of £175 for one child and £300 for two or more children. This will increase to 80% from April 2006.

To get help with childcare costs you must fall into one of the following groups:

A lone parent who is working at least 16 hours per week.
A couple and both of you work at least 16 hours or more each per week.
A member of a couple and one of you works at least 16 hours a week, but the other partner is unable to work due to health problems or disability.

The childcare element of working tax credit can only help with costs of childcare where the childcare is provided through registered childcare providers, this includes registered childminders, nurseries, after school clubs, holiday play schemes etc.

For more information, contact HM Revenues and Customs on 0845 300 3900.

Childcare Affordability Programme (CAP)

The London Development Agency recently launched the London Childcare Affordability Programme (CAP) as part of the London Childcare Strategy. This scheme will provide financial support to enable working parents access affordable childcare.

The CAP will provide affordable and flexible childcare places which are expected to be created through directly subsidising registered nurseries providing full day care.

The aims of this grant are:

making childcare in London more affordable for lower income families
enabling parents on lower incomes to remain in or return to full or part-time work and flexible work
to provide parents with greater access, choice, flexibility and quality childcare provision
provide sustainability for childcare providers
enabling providers to offer quality provision at affordable fee rates

Barnet is in the process of setting up the scheme alongside interested nurseries. Parents will be able to access the grant later this year.

Help for students

There is a range of funding available for students to assist with family and childcare costs depending on the type of course you are doing and your circumstances.

Care to Learn

Parents under 19 and studying can receive up to £5,125 per year, per child towards childcare costs and associated childcare travel costs. To find out more information on support available through Care to Learn you can call the helpline on 0845 600 2809 or visit Care to Learn.

Childcare Grant

Available to Higher Education students, this grant assists student parents with childcare costs. Full time students with dependent children aged up to 16, who pay for registered childcare are eligible for this fund.

The Childcare Grant offers up to 85% of registered childcare costs during term time and the short holidays and up to 70% of registered childcare costs during the long summer holidays. For further information or to make an application, contact the Student Support Team on:

Tel: 020 8359 2233
Email: student.finance@barnet.gov.uk

Learners Support Fund

This fund will help students aged 16 - 18 in College or Sixth Form College with a variety of costs including childcare. Applications for the Learner Support Fund should be made to the Student Support or Welfare Officer at the college you attend.

Career Development Loan

This loan is aimed at students aged 18 and above who are doing a vocational course (education or training courses e.g. Leisure & Tourism, Engineering, nursing). For further information on Career Development Loans contact 0800 585 505 or visit www.lifelonglearning.co.uk/cdl

NHS Childcare Allowance

Students in receipt of a NHS funded Bursary will be able to apply for extra help with registered and approved childcare costs. The childcare allowance will be paid as a supplement to the bursary. Parents can receive up to 85% of their childcare costs (the allowance is means tested). For further information, contact the NHS Childcare Allowance Helpline on 0845 358 655

New Deal for Lone Parents

Lone parents who join New Deal for Lone Parents can get some help with childcare costs while they train for work, or search for work. Contact your local Lone Parent Adviser at your job centre to find out more or get more details from www.newdeal.gov.uk. (Courses must be approved by your Lone Parent Adviser before enrolment to be eligible for a grant).

Children, young people and families