Navigating the Maze of Maternity and Childcare Support
Maternity and childcare support is constantly evolving. So it’s little wonder that the already daunting financial side of parenting can feel even more overwhelming, especially with rising living costs and ever-changing government policies.
There is support available. But like many things in life and finance, it’s rarely straightforward. That’s where we come in.
At Spring, we’re here to cut through the confusion. To help you understand what’s on offer, what you might be entitled to, and how to make it work for your family.
(Just a side note, this post focuses on families in England (the rules vary slightly in Scotland, Wales and Northern Ireland) and outlines the key schemes that could help ease the pressure on your household budget.)
The UK government offers a mix of financial support; some direct (like Child Benefit), some designed to reduce your tax bill (like Tax-Free Childcare), and some means-tested (like Universal Credit).
What you can access will depend on your income, employment status, and the age and number of children in your household.
We’ve broken it down into plain English for you so let’s delve into the schemes available:
· Statutory Maternity Pay
· Maternity Allowance
· Child Benefit
· Universal Credit for Childcare
· Tax-Free Childcare
· 15 or 30 Hours Free Childcare
· Employer Childcare Vouchers (closed to new applicants)
Maternity Benefit
There are 2 maternity benefits available:
· Statutory Maternity Pay (SMP) from your employer
· Maternity Allowance (MA) from the Department for Work and Pensions (DWP), Jobcentre Plus
Both types of payment are intended to help you take time off work both before and after the date your baby is due. You cannot get both at the same time.
Statutory Maternity Pay is a weekly payment that you may be able to get from your employer. You must meet qualifying conditions based on the length of your employment with your employer and how much you earn. The amount of SMP you get also depends on how much you earn.
If you are not eligible for SMP:
Maternity Allowance is a weekly payment that you may be able to get if you have been employed or self-employed for some of the time during and before you became pregnant and your earnings for part of that time were at least £30 a week.
Child Benefit
Child Benefit is a payment made to families with children to assist with costs. Currently, Child Benefit is £26.05 per week for your eldest or only child, and £17.25 per week for each additional child (2025/26 tax year).
Eligibility
· Available to anyone responsible for a child under 16 (or under 20 if they stay in approved education or training).
· A High-Income Child Benefit Charge applies if you or your partner earn over £60,000 per year. This means you may have to pay back some or all of the benefit in extra tax. There’s a guide on how to work out your adjusted income here
By claiming you’ll also get National Insurance credits which count towards your state pension. So even if you are charged, as a result of having a partner who earns over the eligibility threshold, it is still worth claiming if you are not working or earning enough to receive those National Insurance credits and avoid any gaps in your record.
How To Claim
Claims can be made online. Child Benefit is usually paid every four weeks, directly into your bank account.
You can find further information on Child Benefit here.
Universal Credit for Childcare
Universal Credit (UC) is a means-tested benefit that helps low and moderate-income families with living and childcare costs. UC can cover up to 85% of your childcare expenses, up to a maximum of £1,031.88 per month for one child or £1,768.94 per month for two or more children (2025/26 tax year).
Eligibility
· You (and your partner) must be in paid work or have a job offer.
· The childcare must be provided by a registered or approved provider.
· Your household income and savings will determine the amount you receive.
How It Works
You pay your childcare provider first, then reclaim up to 85% of costs through your Universal Credit account. Receipts or other evidence may be required. Payments are usually made monthly in arrears.
Tax-Free Childcare
Tax-Free Childcare is a government scheme designed to help working parents pay for approved childcare. For every £8 you pay into an online childcare account, the government adds £2, up to a maximum of £2,000 per year per child (or £4,000 per year if your child is disabled).
Eligibility
· Both you and your partner (if you have one) must be in work or receiving certain benefits. Each must earn at least the National Minimum Wage or Living Wage for 16 hours a week on average.
· Your child must be under 12, or under 17 if they are disabled.
· You cannot be receiving Universal Credit, Tax Credits, or childcare vouchers at the same time as Tax-Free Childcare.
· Each parent must earn less than £100,000 per year. There’s a guide on how to calculate that here
How It Works
Open a Tax-Free Childcare account through the government’s Childcare Service website, pay in your contributions, and use these funds to pay approved childcare providers. The government automatically tops up your account, making it easier to manage and monitor your childcare spending. You can find more information here
15 Hours Free Childcare
Every child aged 3 and 4 is entitled to 15 hours of free childcare per week, for 38 weeks per year. This entitlement is not affected by parental income, making it accessible to all families.
How To Apply
Speak to your childcare provider as they’ll claim this on your behalf.
30 Hours Free Childcare
You may also qualify for an additional 15 hours (making it 30 in total). From September 2025, this has been expanded so that you’ll be able to get 30 hours of free childcare for your child from the age of 9 months.
Eligibility
· Both parents (or a single parent in a single-parent family) must be in work and earning at least the National Minimum Wage for 16 hours per week on average.
· Each must earn less than £100,000 per year.
· Applies to children 9 months old up to the start of school (reception year).
How To Apply
You can apply online through the Childcare Service portal.
Further information can be found here
Employer Childcare Vouchers
Childcare Vouchers were a salary-sacrifice scheme offered by employers, allowing parents to pay for childcare from their pre-tax income. This scheme closed to new applicants in October 2018, but existing members can remain as long as their employer continues to offer it and they do not change jobs.
Key Points
· No new applicants since October 2018.
· Existing members can stay on the scheme.
· Not compatible with Tax-Free Childcare.
Maximising Your Benefits: Tips and Insights
1. Check your eligibility across different schemes: Use the government’s online calculators to see which combination of benefits will maximise your family’s support. Some schemes cannot be claimed at the same time (e.g., Tax-Free Childcare vs. Universal Credit for childcare), so compare options.
2. Keep up to date with policy changes: Childcare support is a frequent topic of government reform; thresholds and benefit amounts may shift from year to year.
3. Retain documentation: Keep records of payments to childcare providers and any correspondence with HMRC or your local authority for future reference.
4. Speak to your employer: Some offer additional family-friendly benefits, such as flexible working or enhanced parental leave.
5. Consider local authority support: Many councils offer additional grants or discretionary payments for families facing hardship.
FAQs
· Can you claim Tax Free Childcare and Free Hours? Yes, as long as you are eligible.
· My partner and I aren’t married, does that mean their income isn’t considered for the eligibility tests? No, it doesn’t matter if you are married or not, their income needs to be considered.
· I’m a Sole Trader so have no employment income, does that mean I can’t claim any maternity benefit? No, you may be able to claim Maternity Allowance.
· Can you claim Statutory Maternity Pay as well as Maternity Allowance? No.
· What happens if my circumstances change? Report any changes in income, employment, or family situation to HMRC or DWP to ensure you continue to receive the correct entitlements.
· Does the support change if I move within the UK? Yes, England, Scotland, Wales, and Northern Ireland have slightly different schemes, especially for free childcare hours.
Navigating the schemes available can be daunting, but understanding your options is key to making the most of the support on offer. Staying informed and proactive can help ease the financial pressures of raising a family. For tailored advice, consult the official government websites, reach out to your local authority or feel free to ask us. With the right knowledge, you can focus more on the joys of parenthood and less on financial worries.
This summary is to serve as a guide, and it should not be taken as professional advice.