More parents in Thurrock are getting help with the cost of childcare through a government scheme, new figures reveal – but many could still to be missing out. Tax-free Childcare topped up working families spending on childcare by £241 million across UK last year, with thousands more signing up to the scheme. But HM Revenue and Customs believes around 1 million eligible households are not making use of the scheme – while industry bosses blame the current funding system for being too complex. In Thurrock, HMRC data shows 1,040 parents used the scheme to help with the cost of childcare in 2020-21, up from 950 the previous year.
However, not all children qualify for tax-free childcare.
Applying parents must be in work and earning at least the equivalent of the national minimum wage for 16 hours per week – currently £142.56 for those aged 23 or over, but less for younger workers.
They are also ineligible if they claim Universal Credit, tax credits, or certain other benefits, or if one of them earns more than £100,000 a year.
Across the UK accounts were used for 461,705 children in 2020-21 – up from 396,365 the year before.
The Early Years Alliance welcomed the increase in uptake but said it was still ‘significantly lower than projected’ and money not spent should be reinvested into childcare.
Number of Chelmsford parents claiming for childcare up - but some are missing out MORE parents are claiming help with the cost of childcare - but many more are still thought to be missing out. Tax-free Childcare topped up working families spending on childcare by £241 million across UK last year, with thousands more signing up to the scheme. But HM Revenue and Customs believes around 1 million eligible households are not making use of the scheme – while industry bosses blame the current funding system for being too complex. In Chelmsford, HMRC data shows 1,435 parents used the scheme to help with the cost of childcare in 2020-21, up from 1,190 the previous year.
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