The Government said the demand demonstrated how essential the scheme was and why parents’ eligibility must be protected.
The DfE and HMRC have confirmed the extension of eligibility for the Government’s childcare offers for parents whose income has been affected by Covid-19.
Working parents who may earned less during the pandemic and fallen below the minimum income levels for 30 hours childcare and Tax-Free Childcare will continue to be eligible for the schemes until 31 October.
Critical workers who may exceed the income threshold for the 2020-21 tax year, as a result of working more to play a vital role in tackling the coronavirus pandemic, will also continue to receive support this tax year.
HMRC’s deputy chief executive and second permanent secretary, Angela MacDonald, said, ‘HMRC has been providing vital financial support to families during a time when it has been needed most and we will continue to help them as they gradually transition back to a normal life.
‘We want to make sure families will not be adversely affected by any abrupt change in circumstances, which is why we have extended available support through Tax-Free Childcare to give families that extra boost.’
The DfE said that more than 600,000 three- and four-year-olds benefitted from the 30 hours in the first two years of delivery, and nearly 350,000 children were taking up the scheme in January 2020.
Children’s minister Vicky Ford, said, ‘Our 30 Hours childcare offer has always been about supporting parents back into work, and in these times, this ambition is now more important than ever. That is why we are again extending eligibility for the Government’s childcare offers so that no parent loses out because of a fall in income due to coronavirus.
‘This builds on our significant financial support for the early years sector – who are so integral to the UK’s recovery from this pandemic. We are continuing to provide longer term reassurance to nurseries and childminders that are open by ‘block-buying’ childcare places for the rest of this year at the level we would have funded before coronavirus, regardless of how many children are attending.’
To continue receiving the financial support for Tax-Free Childcare and the 30 hours, parents need to reconfirm their eligibility every three months.
Working Tax Credit
HMRC has continued to help Working Tax Credit claimants with the cost of childcare throughout the pandemic.
Parents and carers in receipt of the childcare element of Working Tax Credits who have continued to pay childcare fees they have incurred, despite their children being unable to access childcare because of Covid-19, must notify HMRC if they expect this to continue beyond 7 September. After this date HMRC will no longer pay the childcare element for those in this position.
Claimants should update HMRC as soon as possible if their childcare stops or if the costs for their childcare decrease or end.
Parents and carers can report such changes by calling the tax credits helpline.
More information
- Parents and carers can check their eligibility for Tax-Free Childcare or 30 Hours Free Childcare in relation to Covid-19 online.
- If parents’ childcare circumstances have changed recently, the Government advises that parents should log into their childcare account, check their details and reconfirm as usual to avoid delays later
- Definition of critical workers affected by coronavirus is available here
- Parents and carers who receive Working Tax Credits should check their eligibility and updated guidance relating to coronavirus at https://www.gov.uk/help-with-childcare-costs/tax-credits