Amy Knight
Duncan Ferris
The start of the summer holidays comes with mixed emotions. Children (and teachers) have been counting down the days until schools close for a six-week break. But holidays can be stressful for working parents juggling childcare around their jobs.
Holiday clubs and sports camps offer a solution, though they can be expensive, with costly activities putting a strain on many household budgets. In fact, parents often pay higher rates compared with wraparound care in term time.
In 2023, research by the charity Coram Family and Childcare, found that UK parents paid, on average, £157 per week for childcare in the holidays, though prices varied between regions. Prices are also on the rise, with parents paying, on average, 3% more in 2023 than in 2022, and it is expected costs will have risen again this year.
Cost is not the only barrier: activity clubs can sell out rapidly, despite many not even offering the hours needed to enable parents to fit in a full day’s work.
Despite the need for more support for families, there are ways to make holiday childcare more manageable. Below, we run through five tips to make things easier, including how to tap into available financial support.
1. Claim back costs through Universal Credit
Universal Credit (UC) claimants can recoup up to 85% of their childcare costs, up to a maximum £1,014.63 per month for one child or £1,739.37 for two or more children. If you already claim back childcare costs in term time, you can continue to upload evidence of the childcare you pay for during school holidays.
You’ll need to foot the childcare bill upfront and save the invoice or statement from the provider to upload to your Universal Credit account. It’s possible to claim back up to three months of past childcare costs, but the sooner you can upload the evidence, the sooner you’ll be reimbursed as part of your monthly UC payment.
If you don’t currently receive Universal Credit, find out whether you’re eligible by using a benefits calculator, such as the Turn2us Benefits Calculator.
2. Sign up for Tax-Free Childcare
Tax-Free Childcare (TFC) is the main support available from the Government for holiday childcare. It takes 20 minutes to apply for Tax-Free Childcare on the government website.
The scheme offers up to £2,000 per child each year towards childcare costs for children aged 11 and under. Holiday clubs and sports camps are included, as well as childminders, nurseries, nannies, and play schemes – as long as you select an approved provider.
Depending on where you are in the UK, you can check if a provider is approved:
- England – with Ofsted or the list of registered childminder agencies
- Wales – with Care Inspectorate Wales
- Scotland – with the Scottish Care Inspectorate
- Northern Ireland – with the local early years team register
For every £8 you pay into your TFC account, the Government will add £2, effectively chopping 20% off your bill. Yet, each year, billions of pounds goes unclaimed by parents who are entitled to this subsidy.
“We need to rename Tax Free Childcare because people think it’s related to their tax and it’s not,” says Rebekah Jackson Reece, CEO of the Out of School Alliance (OOSA). She told NerdWallet that parents “get really concerned” about what TFC means and “make the assumption that it’s not for them”. OOSA works with childcare providers to share positive messages with parents, encouraging them to claim the government support.
To qualify for TFC, you and your partner (if you have one) must both be earning at least the National Minimum Wage for 16 hours per week, but each earn less than £100,000 per year. The Childcare Choices website explains more about earnings and eligibility.
3. Ask around locally
Some lower-income families in England can enjoy free activities and healthy meals during school holidays, through the Holiday Activities and Food (HAF) programme. Taking part in the programme can be a great way to ensure your child receives nutritious meals, stays active and meets new friends this summer.
HAF is typically targeted at families living in deprived areas, and is aimed at children who receive benefits-related free school meals (FSM). However, local authorities have the flexibility to offer 15% of their places to those not in receipt of free school meals.
Jackson Reece told NerdWallet that despite insufficient funding, HAF providers and the childcare sector as a whole do “a huge amount to support families across the board, recognising that childcare takes off a significant chunk of the family purse.”
Similar programmes exist in Scotland, Wales and Northern Ireland. Contact your child’s school or local authority to find out more.
“It’s always worth asking,” says Zoe Raven, founder and CEO of Acorn Early Years Foundation, who encourages parents to reach out to their parish or city council as well, adding “they’re more likely to do something if they know there’s a demand.
4. Lean into your community
They say it takes a village to raise a child, and for many parents, getting through the six-week summer holiday is a matter of everyone mucking in. Childcare can be spread between different family members; “grandparents, partners, everybody taking turns to have a bit of childcare responsibility,” says Raven.
If you, or your friends and neighbours, have teenage children who aren’t working during the day, offering them cash to keep an eye on younger kids could reduce your childcare bill. This is a great way for young people to earn money, take responsibility and build important skills for adulthood. Though you won’t be able to use Tax Free Childcare to pay anyone who is not Ofsted registered or an approved provider, employing a trusted teen is likely to be much cheaper than formal childcare.
5. Remember that fresh air is free
Allowing older children the freedom to get outdoors with their friends could reduce the need for paid-for childcare. This is a very individual choice and relies on your knowledge of your child, their friends and the neighbourhood.
This ‘free range’ approach, commonly adopted in Scandinavian countries, could save youngsters from screen addiction.
“There is that temptation that you just let them go and watch telly or be on their screens because you think they’re safe and it’s not costing you anything,” says Raven. “[But] stranger danger is much more on the internet than it is out in the street.”
Use your knowledge of local area to suggest safe places for your child to meet up with their mates, where you know there’ll be a responsible adult close by. If you’re unsure what level of independence your child is ready for, take the quiz on the NSPCC website.
Image source: Getty Images
About the Author
Dive even deeper
What is Equifax? How to Get Your Credit Score and Credit Report
Sam Bromley
The Cheapest Place to See Oasis Live and 3 Ways to Save When You’re There
Sarah Brooks