As the recession begins to bite, money worries are amongst the biggest concerns for parents across the UK - yet many remain unaware that they could be entitled to thousands of pounds from the Government to help with childcare costs.
The crunch is clearly having a big impact on household expenditure; a recent You Gov poll revealed that over half of us with children (57%) feel unable to save any money, and nearly half (47%) of us are not totally sure if we can even afford to pay the bills over the next six months. It's therefore hardly surprising that over a third (35%) of us are kept awake at night with money worries. However many families could be entitled to a range of financial support that will help with the cost of their childcare.
The Children's Minister Beverley Hughes is encouraging parents to investigate their entitlement options. She says, "Research shows that good quality childcare has a positive impact on a child's development and learning but in the current economic climate parents are increasingly concerned about the affordability of the childcare in their area.
"We want to ensure that families across the country have access to affordable childcare and tax credits can help those families on low incomes, enabling all parents to give their children the best start in life."
Every 3 and 4 year old is entitled to at least twelve-and-a-half hours of early learning each week from a range of childcare providers including nurseries and pre-schools. By next year this figure is set to increase nationally to 15 hours a week, and may already be available in your local authority.
For those working more than 16 hours a week, up to 80% of your childcare costs could be met through tax credits. Parents with one child could get back up to £140 a week, while parents with two or more children could get back up to £240 a week.
The help isn't just limited to those with pre-school children, parents with older kids can also use tax credits to pay for childcare and activities delivered through school - such as breakfast, after-school groups and holiday clubs.
Many parents are also unaware that some employers offer a childcare voucher scheme that allows parents to pay for their childcare from their pre-tax income. For a basic rate taxpayer this could mean that for every £100 of income they could receive £130 worth of childcare vouchers.