Think you can’t afford childcare? An expert explains the benefits that could make all the difference

Another recent study by The Office for National Statistics shows that even if mothers do return to work and continue in their career, they earn on average £1,051 less per month five years after having their first child, which represents a 42% drop compared to what they were earning before the birth. And this financial deficit just gets worse and worse with each child a mother has, with Rachael Grocott, CEO of Pregnant Then Screwed describing it as "a financial freefall".

So, is there any help out there to support mothers who want to work but can't make the childcare costs add up? We spoke to Hazel Snaddon, Service Delivery Coach and Childcare Lead at the Department for Work and Pensions about the financial help and careers advice available from the government for mothers looking to go back to work after having a baby.

Everything you need to know about childcare benefits and schemes

What are the biggest barriers for new mothers getting back into work after having a baby?

"In my experience, the main barrier is confidence if they have not worked for some time," says Hazel Snaddon. "Also, being quite overwhelmed about where to access support and how to ensure they are claiming all the benefits they should be. It can be difficult trying to envisage how work can fit in around this new person they are responsible for."

What financial support is there to help mothers who are struggling to work due to high childcare costs?

There are a number of different government schemes to help working mothers (and fathers) depending on their financial situation, including Funded Hours, Tax-Free Childcare, Childcare Grants and Universal Credit childcare costs. Universal Credit Childcare Costs can help those on low incomes or looking to start a job for the first time by covering up to 85% of childcare costs.

"Universal Credit childcare costs are the support available to working parents to help towards any childcare costs they have to pay to enable them to go to work," says Hazel. "Speak to your work coach about what support you may be eligible for."

Who is eligible for Universal Credit childcare costs?

"The UC childcare costs are available to parents who are claiming Universal Credit and are working. It is open to both lone parents and couples," says Hazel. "Both members of the couple must be in work unless one of them falls into a category which makes them exempt. This can be if they have been assessed to have limited capability for work or work-related activity, have regular and substantial caring responsibilities or if one of the couple is temporarily absent from the household – this could be due to being in prison, hospital or residential care."

The level of support you can get depends on your individual situation. You can find out exactly what you qualify for by inserting your details into this calculator.

What sort of childcare can these government schemes go towards?

"The childcare must be provided by a registered provider," says Hazel. "In Scotland and Wales, the provider must be registered with the care inspectorate while in England it is OFSTED. The parent can source the childcare themselves, but support can be given to do this via the Best Start in Life website. Types of support includes childminders, nurseries, after-school clubs and breakfast clubs."

How much money can parents get towards childcare from Universal Credit?

"The amount will vary depending on individual circumstances, but we can reimburse up to 85% and up to a maximum amount of £1031.88 a month for a single child and £1768.94 a month for families with two or more children," says Hazel. "Parents may also be eligible to get up to 100% of upfront childcare costs for up to one month of childcare if they are starting a new job or if they are returning to work and they are increasing their contracted hours."

Do parents need to have secured a job or have a job to go back to in order to qualify?

"Yes, a firm job offer must have been accepted and we will ask for proof of this," says Hazel.

How old does a child need to be in order for their parents to receive childcare support?

"Support is available for children from birth up to the age of 16 as long as they are declared as dependant children on the parents’ claim for Universal Credit," says Hazel.

Tax-Free Childcare is available for children aged 0-11 (they stop being eligible on 1 September after their 11th birthday) and Funded Hours are now available for children from the ages of 9 months - 4 years to help with childcare before they start school.

Are there any extra allowances for children with disabilities or SEND?

If you're worried about going back to work because your child has extra needs that you think could end up costing lots more, there are some extra benefits you might be entitled to.

"UC customers might get an extra monthly amount (Disabled Child Element) to help with the extra costs of bringing up a disabled child," says Hazel. "To be eligible for the Disabled Child Element, the child must be in receipt of Disability Living Allowance (DLA) or Personal Independence Payment (PIP)."

What’s the difference between Tax-Free Childcare and UC childcare costs?

With several government funding options available it can be hard to know which one you can apply for, but it's important to understand that if you are on Universal Credit you cannot also get Tax-Free Childcare. Most people who are eligible for Universal Credit will be better off claiming the childcare element of Universal Credit rather than using Tax-Free Childcare.

"Tax-Free Childcare (TFC) is administered by HMRC. It is available to eligible working parents (both the applicant and their partner, if they have one) who are expected to earn at least the equivalent of 16 hours at the National Minimum Wage per week (but not more than £100,000 each per year)," says Hazel. "For every £8 families pay in to their child’s online TFC account, the Government will make a top-up payment of £2.

"Households can receive support for each eligible child from age 0 to 11 (stops being eligible on 1 Sept after their 11th birthday) up to a maximum of £2,000 per child per year. Or, if their child is disabled, they may get up to £4,000 a year until 1 September after their 16th birthday. The child is eligible for the £4,000 a year if they: get Disability Living Allowance, Personal Independence Payment, Armed Forces Independence Payment, Child Disability Payment (Scotland only), Adult Disability Payment (Scotland only) or if they are certified as blind or severely sight impaired.

"Tax-Free Childcare cannot be claimed alongside UC childcare element or if the parent is in receipt of childcare vouchers."

Can the UC childcare costs be used for anything other than childcare?

"The UC childcare element reimburses up to 85% of actual childcare costs," says Hazel. "The Department for Education’s statutory guidance states that whilst providers can charge for consumables like meals, nappies or trips, these charges must be optional and should not be made a condition of accessing a childcare. UC customers who choose for their provider to provide nappies and meals are expected to use the UC child element, child benefit and their earnings to pay for these costs."

Does the DWP do anything else to support mothers to get back into work?

Getting financial help with childcare costs is one thing, but another huge barrier for many women after having children is a lack of confidence or needing to retrain after being out of the workplace for a while.

"Our work coaches will look at the support individuals need to help return to work or in some cases start work for the first time," says Hazel. "The support is tailored to each individual and we will also engage with our partners for extra support. This can be from very basic help, such as confidence building, parenting skills, identifying job goals to other support such as work-related training and work experience. We will cover the costs of childcare if a parent needs this to be able to attend any employability related training that we arrange for them.

"We recognise that returning to work can be daunting for parents. We want to make the experience as easy as possible and working with partners, we try to ensure that parents are aware of the support available. In the area I work, we have very close links with the local council who have a Parental Employment Support programme we can refer to and we work together to offer the necessary support.

"We run information sessions within the Jobcentre to give parents information about our childcare support and employability support. I also do a lot of work in the community – attending events with other partners that parents will be attending, again to get the word out about what parents can access while claiming Universal Credit."

Find out more about how to claim and the help on offer here.