Thank you for contacting me about childcare provision.
For many parents, being able to afford good-quality childcare is essential to working and supporting their families. The Government has allocated new funding of £208 million by 2024-25 including £170 million by 2024-25 to increase the hourly rate to be paid to early years providers to deliver the Government's free hours offers. This builds on the £44 million increase that was confirmed at the last Spending Review. Further, it includes £18 million in 2024-25 to create a network of family hubs to improve access to services for families, and £20 million in 2024-25 for parenting support.
I know the universal 15 hours' free childcare for all three and four-year-olds and the additional 15 hours for eligible working parents of three and four-year-olds has helped many parents obtain more secure employment, enhanced their career opportunities and improved their work-life balance. Moreover, parents in receipt of certain benefits may be eligible for 15 hours of free childcare and early education a week for two-year-old children.
The tax-free childcare scheme is also intended to support working parents with their childcare costs. If you use an approved childcare provider who is signed up to the scheme, there is a tax-free childcare scheme where existing childcare fees are topped-up to help support parents in work. I am glad that the Government will pay £2 for every £8 paid to your childcare provider via an online childcare account. Information on eligibility for the scheme and how to apply can be found at the following link: https://www.gov.uk/tax-free-childcare.
Working parents on a low income may also be eligible for help with up to 85 per cent of their childcare costs through Universal Credit childcare. This is subject to a monthly limit of £646 for one child or £1108 for two or more children, payable in arrears.
Thank you again for taking the time to contact me