Pay Plan Blog 3

Support with raising children

Raising children is one of the most rewarding experiences life can offer. However, it can be surrounded by a fair share of worries, particularly when it comes to your finances. From milk to nappies, childcare to clothing, the costs soon add up.
The average amount of money spent on raising a child from birth to 18 in the UK – including housing and childcare costs – is £223,256, according to the latest research from investment platform Moneyfarm. That works out at about £12,400 a year, or £1,030 a month. (The Times Website)
For many prospective and new parents, these financial concerns can be overwhelming, which is why we have put together a list of resources and benefits that may be available to help ease the burden depending on your circumstances.

Help with childcare costs available

• Sure Start Maternity Grant – You could get a one-off payment of £500 to help towards the costs of having a child. You usually qualify for the grant if you’re expecting your first child, or you’re expecting a multiple birth (such as twins) and have children already and you or your partner already get certain benefits. The grant must be claimed within 11 weeks of the baby’s due date or within 6 months after the baby has been born. The grant does not need to be paid back and it does not affect your other benefits or tax credits. If you live in Scotland, you cannot get a Sure Start Maternity Grant, you can apply for a Pregnancy and Baby Payment instead. To find out more about the Sure Start Maternity Grant click here.

• Healthy Start Vouchers – If you’re more than 10 weeks pregnant or have a child under 4, you may be able to get help to buy healthy food and milk. Click here to check the eligibility criteria.
The vouchers can be used for;
o Plain liquid cow’s milk
o Fresh, frozen, and tinned fruit and vegetables
o Fresh, dried, and tinned pulses
o Infant formula milk based on cow’s milk

• Child Benefit – Child Benefit is available if you are responsible for raising a child under 16, or under 20 if they remain in approved education or training. Payments are made every 4 weeks, typically on a Monday or Tuesday. There are two rates: £25.60 per week for the eldest or only child, and £16.95 per week for each additional child. You can claim Child Benefit 48 hours after registering your child’s birth or once a child starts living with you. Claims can be backdated for up to 3 months. If either you or your partner has an ‘adjusted net income’ over £60,000 a year, you may have to pay the High Income Child Benefit Charge. Click here to check the eligibility criteria.

• Tax Free Childcare – You can receive up to £500 every 3 months (up to £2,000 a year) per child to help with childcare costs. For a disabled child, this amount increases to £1,000 every 3 months (up to £4,000 a year). To access this support, you need to set up an online childcare account for your child. For every £8 you deposit into the account, the government will contribute £2, which can be used to pay for childminders, nurseries, after-school clubs, nannies, and play schemes. Note that you cannot receive Tax-Free Childcare simultaneously with Working Tax Credit, Child Tax Credit, Universal Credit, or childcare vouchers. Click here to check the eligibility criteria.

• Universal Credit Childcare Support – If you qualify for Universal Credit, you might be able to reclaim up to 85% of your childcare costs while working. This could amount to up to £951 per month for one child or £1,630 for two or more children. You need to pay for your childcare costs upfront, report them to Universal Credit, and then receive a reimbursement for a portion of the expenses. Find out more here.

• 15 & 30 Hours Free Childcare – In England, working parents or those receiving government support can access 15 hours of childcare per week for their 2-year-olds. The same eligibility extends to parents of 3 and 4-year-olds, who can receive 30 hours of childcare per week. Starting in September 2024, the government will provide 15 hours of funded childcare to all children from 9 months old. By September 2025, working parents of children under five will be entitled to 30 hours of government-funded childcare per week. Find out more here.

• Free school meals – All children will be able to get free school meals if they’re in a government-funded school and in reception class, year 1 or year 2. After this age, you may get free school meals if you receive certain benefits. Find out if you are eligible here.

• Holiday activities and food programme – If you get access to free school meals you quality for free activities and healthy food for your children in the Easter, Summer and Christmas school holidays. Further information can be found here.

What you can do next
If you are struggling with debts call us on 0800 072 1206. We’re open from 8am – 8pm Monday to Friday and 9am – 3pm on Saturdays.
Alternatively, you can visit our www.payplan.com/bfawu to speak to us via live chat or for more information.