Food bills have gone up, house prices  are falling, the cost of living is on the rise. And for parents, the cost of childcare is ever increasing. Not great news by all accounts, but are you tapping into all the benefits and schemes available to you? Here is a run-down of what’s available.

Childcare Affordability Programme
If you live in London, have children aged up to five years and you qualify for child tax credits at a higher rate than the family element, you could qualify for the Childcare Affordability Programme.

This funding is only available to lower income families that are in receipt of the Child Tax Credit at a rate higher than the family element (for 2006/2007 this meant a saving of more than £547.50 per year). 

Each case is viewed according to individual circumstances, so get in touch with the London Development Agency (who part-fund the scheme with Surestart).

Tax Credits
If your family income is below £58,175 per year (or £66,350 if you have a child under one) you may be able to claim Child Tax Credits or Working Tax Credits.

Each case is viewed according to individual circumstances, so get in touch with the Inland Revenue.

Free part-time nursery places for three and four-year olds
This scheme is available to all three and four-year-olds and gives up to 12.5 hours (increasing to 15 hours in 2010) of childcare for free, for 38 weeks of the year.

You need to speak with the nursery manager if your child is already at nursery, as some nurseries are not always proactive in letting parents know about this discount.

Childcare Vouchers Scheme
Many employers have now signed up to the Childcare Vouchers scheme, which allows parents to sacrifice some of their gross salary in return for “vouchers” that can be used to pay for childcare.

The first £55 each week (£243 each month) can be bought free of tax or national Insurance, meaning a lower rate taxpayer could save around £962 per year, and a higher rate taxpayer around £1,195.

Most companies can join the scheme and, so if you haven’t already, it could be well worth asking to see if yours has signed up with one of the voucher providers. However, if you are able to claim benefits, you may find the Childcare voucher scheme affects these, so find out before signing up.

And of course, many larger companies offer their staff subsidised onsite crèche facilities, although these may be few and far between.
There are many childcare voucher scheme providers around, so if you want an impartial explanation, visit HMRC.

Child benefit
When you register the birth of your child, you should get a form to fill out for child benefit. This is the one benefit you get regardless of your income.

The rates change incrementally every year, and you should get a letter from HMRC. This year, the eldest child is entitled to £18.80, with each additional child getting £12.55.

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