Martin Lewis fan saves almost £2k on nursery fees…

Martin Lewis fan saves almost £2k on nursery fees through scheme he had 'never heard of'

A Martin Lewis fan has thanked the money expert after taking his advice and managing to save nearly £2,000 on childcare costs.

Martin alerted parents to Tax-Free Childcare in a recent episode of ITV's The Martin Lewis Money Show, a scheme launched by the Government in 2017 which allows parents to claim money to help with paying for the likes of nurseries and childminders. And one viewer shared that the information had helped him with his own costs, saying that he was one of many parents who had previously been completely unaware of the scheme.

"Thank you so much for alerting me to Tax Free Childcare for our nursery fees, worth almost £2k in savings," the fan wrote to Martin via Twitter. "I'm furious though that neither I, or any of the many other new parents I now know had ever heard of it till you mentioned it."

The Tax-Free Childcare scheme gives parents the chance to get up to £500 every three months - amounting to £2,000 a year - for each child they have in order to help with childcare costs. This amount is increased to £1,000 every three months if a child is disabled, according to the Gov.uk website.

You can use Tax-Free Childcare to pay for approved childcare facilities, such as nurseries, childminders and nannies, as well as after-school clubs and play schemes. It's important to make sure your childcare provider is signed up to the scheme, as they must be signed up before you can pay them and benefit from the money.

The MoneySavingExpert website explains how the scheme works: "Tax-Free Childcare is designed so that for every 80p you put in, the Government will add 20p – so it effectively gives you basic-rate tax back on what you pay (hence the scheme's name)." It is available to both single parents and couples, but if you are in a couple, both you and your partner need to be in work or meet the criteria listed below to qualify .

Am I eligible for Tax-Free Childcare?

Whether or not you are eligible for Tax-Free Childcare depends on if you are working and your household income, as well as your child's age and circumstances. You can usually get Tax-Free Childcare if you - and you partner, if you have one - are in work, on sick leave or annual leave, or on shared parental, maternity, paternity, or adoption leave.

If you're not currently working, you may still be eligible if your partner is working and you get certain benefits such as Incapacity Benefit, Severe Disablement Allowance, Carer's Allowance, or contribution-based Employment and Support Allowance. You can also apply for the money if you are starting or re-starting work within the next 31 days.

Eligibility also depends on your income - to be eligible for Tax-Free Childcare, you and your partner must each expect to earn at least the National Minimum Wage for 16 hours a week on average over the next three months. This would be £1,976 if you are aged 23 or over, £1,909 if you are aged 21 or 22, £1,420 if you are aged 18 to 20, or £1,000 if you are under 18 or an apprentice.

You or your partner must also earn less than £100,000 a year to be eligible. If you are receiving certain benefits, including Working Tax Credit, Child Tax Credit, or Universal Credit, you will not be able to claim Tax-Free Childcare at the same time.

To qualify, your child must be aged 11 or under and usually live with you - adopted children are eligible, but foster children are not. Children stop being eligible for Tax-Free Childcare on September 1 after their 11th birthday, unless they are disabled, in which case parents may be able to get up to £4,000 a year to help with childcare costs until September 1 after their 16th birthday.

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