Help with childcare costs

This is information, not legal advice

This explains how help with childcare costs generally works in England & Wales. Figures and rules change. Use the official links and the GOV.UK childcare calculator below, and check your own situation before relying on anything here.

Childcare is one of the biggest costs after a separation, and a lot of dads don’t realise how much help is available. The main scheme is Tax-Free Childcare, and there’s an important wrinkle for separated parents: only one of you can hold the account for a given child.

Tax-Free Childcare: the basics

You open an online childcare account, and for every £8 you pay in, the government adds £2 (a 20% top-up). You then use the account to pay a registered childcare provider.

• The top-up is worth up to £500 every 3 months (£2,000 a year) per child, or £1,000 every 3 months (£4,000 a year) if your child is disabled.
• It covers children aged 11 or under (up to 16 if they are disabled).
• You use it to pay approved childcare: registered nurseries, childminders, after-school and holiday clubs.

Who can get it

You (and a partner, if you have one) generally need to:

• be working, and each expect to earn on average at least the equivalent of 16 hours a week at the National Minimum or Living Wage over the next 3 months (self-employment counts);
• each have an income of under £100,000 a year. If either of you earns over £100,000, you lose it, even if the other earns very little.

You cannot use Tax-Free Childcare at the same time as Universal Credit, tax credits, or childcare vouchers. You reconfirm your details every 3 months.

The separated-parents rule (important)

Note

Only one parent can hold the Tax-Free Childcare account for a particular child. You and your ex cannot both have an account for the same child.

If you are separated and jointly responsible for your child, you need to agree who applies. If you cannot agree, you can both apply and HMRC will decide who gets the account. In practice it usually makes sense for whichever parent actually pays the childcare to hold the account.

This is worth sorting out calmly as part of the wider arrangements, rather than letting it become another thing to fight over. The money is for the child either way.

Other help worth knowing about

• Funded childcare hours. Working parents of younger children can get free or funded hours (15 or 30 hours, depending on the child’s age and your circumstances). This is a separate scheme and can usually be used alongside Tax-Free Childcare.
• Universal Credit childcare element. If you claim Universal Credit, you may be able to get back a large share of your childcare costs. You cannot use this and Tax-Free Childcare at the same time, so it’s worth checking which leaves you better off.

The quickest way to see what fits your situation is the official calculator.

Where to get real help

• GOV.UK childcare costs calculator: shows which schemes you qualify for and which is best for you.
• GOV.UK: Tax-Free Childcare: full eligibility and how to apply.
• GOV.UK: help paying for childcare: all the schemes in one place.
• Citizens Advice: free, independent help understanding your options.

Last reviewed: 10 June 2026. Childcare figures and thresholds change, so check the official links above for the current rules before you rely on anything here.