How does funded childcare work - payments

[menousername]

Hi all

We have recently become eligible for funded childcare (nursery). The single application process included the tax free account which has opened an NSI Govt account.

Been through the various threads but not seen anything on how the payment process actually works - can anyone enlighten me?

You pay into the account, the Govt tops it up then you pay the nursery. But how does that work in practice?

Does the nursery break down the charges minus the tax top up l, minus the funding and let you know the balance to pay?

Is there a limit on how much topping up the Govt will do over time? How do you know how much to pay into the account?

Do some people need to submit annual self assessments in relation to childcare? Or am I confusing that with child benefit?

Thank you

[Bikesalot]

menousername said:

Hi all

You pay into the account, the Govt tops it up then you pay the nursery. But how does that work in practice?

Does the nursery break down the charges minus the tax top up l, minus the funding and let you know the balance to pay?

It’s as simple as you’ve described. Nursery provider will send you an invoice with a total amount you need to pay, this won’t be broken down via tax top up. That amount can be set up as regular payment via your childcare account. There will be a child reference which you need to give to nursery.
The gov will top up to a maximum of £500 per 3 months but only ever 20% of what you’ve put in.

It’s your responsibility to make sure the account is topped up and regular payments reach the nursery provider or they’ll come direct for the money.

Self assessment is only needed for child benefit depending on income.

[ILikeCake]

As above. The only thing I'd add is that if your nursery is anything like ours the charging structure/invoices and how 'free' hours are applied is incomprehensible.

From September kids from 9 months will get 30 hours free. My kid is 4 so I thought there would be no change in fee. Nursery have sent round a letter saying that they are 'spreading' the hours over all children. So I guess bad news for parents of kids aged 9 months, good news for me!

How this is all worked out by the nursery I have no idea.

[Bikesalot]

ILikeCake said:

As above. The only thing I'd add is that if your nursery is anything like ours the charging structure/invoices and how 'free' hours are applied is incomprehensible.

From September kids from 9 months will get 30 hours free. My kid is 4 so I thought there would be no change in fee. Nursery have sent round a letter saying that they are 'spreading' the hours over all children. So I guess bad news for parents of kids aged 9 months, good news for me!

How this is all worked out by the nursery I have no idea.

I’ll second this. Their fee structure can only be described as dark arts, there is no such thing as free childcare, funded hours are term time only so split across the year. 15 hours was 11.something a week. Plus there is a food / consumables charge ontop. Plus extra curricular activities fee.

I’ll forever moan about the costs / funding structures but my daughter absolutely loves her nursery and we’re impressed with the service.

[menousername]

Thanks all and thanks Bikesalot for the explanation. That makes sense.

I wondered particularly about how the Govt top up works and coordinating it all.

And yes - already (tried anyway) navigated the fee structure, which changed with the 30 hours. Fixed hours moved later which now requires an early drop off charge before funding applied etc etc. Anyway better than where we were