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Any funding you get from us towards your childcare costs could affect other benefits you get.

First published:
7 November 2022
Last updated:

Universal Credit

You cannot use the childcare costs part of Universal Credit (on GOV.UK) for hours of childcare funded by us. You can, however claim Universal Credit childcare costs for any additional childcare you need to pay for. This can be for either your 3 or 4 year old or any other child in your household.

If you get the childcare part of Universal Credit you need to report any changes in your family or work life to DWP on GOV.UK.

Tax Credits

You can still receive Tax Credits (on GOV.UK) at the same time as receiving the childcare offer.

Tax Credits are worked out based on how much you earn and an estimate of your childcare costs. Receiving the childcare offer may lead to an increase in your income. For example if you can work more hours, or a reduction in your childcare costs. This means that you may receive less tax credits.

If you get Tax Credits you need to report any changes in your family or work life to HMRC on GOV.UK. This includes funding from us to help pay for childcare costs.

Tax-Free Childcare

You can use Tax-Free Childcare (on GOV.UK) and still receive the childcare offer for any additional hours of childcare you need.

If you get Tax-Free Childcare you need to reconfirm your details every 3 months.

You may be able to use Tax-Free Childcare to pay for extra costs such as food, transport and retainer fees.

You cannot use Tax-Free Childcare if you receive Working Tax Credit or Universal Credit.