Tax free childcare thing

[Napssavelives]

I added some money to the government tax free childcare scheme this morning. I didn’t create a standing order just a one off payment. How long does it usually take for the money to go from my account to the account in the website ready for me to pay?! It’s awfully confusing and given it’s the first time I’ve used it I’m a little worried that the money isn’t going to end up there! At the moment it still says my balance is zero!

[TravelLoverAndDucky]

It takes a few days and you will get an email confirming the money has gone in. We usually top it up on the weekend and the money is in on a Wednesday. We used it since May and no money has gone missing yet.

[Napssavelives]

Phew! Thanks for letting me know :)

[Mummyh2016]

It’s normally the following working day I think. I put mine in this morning and expecting it to be able to use on Monday, Tuesday at the very latest.

[itsaboojum]

IME it takes about a week to transfer money from a parent's account into a childcare provider's bank account. Worth bearing in mind so you can pay on time and don’t want to attract late payment charges.

Some childcare providers like parents to tell them when they activate the transfer. The provider's have no way of knowing a payment has been initiated until the cash appears on their bank statement. (This is in contrast to childcare vouchers, where the provider can track a payment from their online dashboard. )

[nannynick]

I agree itsaboojum, it's about a week to do the transfer from start to finish.

Payment in takes a day or two.
Topup usually happens within 24 hours.
Payment out takes 3 days.
Nothing happens on non-banking days, so weekends and bank holidays don't get counted as days.

Good news though is that the system is changing and will be using faster payments in the near future. Meanwhile it uses BACS which takes time.

[eastmidswarwicknightnanny]

Just found this really useful just switching from vouchers to this scheme do I just use nursery normal bank account details or do I need to ask for different details

[TangelasVine]

It must depend on your bank, mines usually there a few minutes later - I pay by debit card

[Napssavelives]

It took a couple of days in the end but I did do it Friday afternoon

[nannynick]

@eastmidswarwicknightnanny You would look up the nursery on the providers list, you don't need to enter their bank details.

@TangelasVine Do you mean the payment in, is that now clearing a lot faster? Great news if it is as that has been something that was being improved on - though it has always shown as being in quick, just not being cleared funds. The system should now show when payment in is cleared funds so can be used.

I have heard that this week there has been an issue with payments out not working. has anyone found issues with paying your childcare provider this week?

[TangelasVine]

Nannynick I mean I've never had any problems yet. I pay on debit card and it's in almost straight away. The I set the payments to go to nursery the next day and they go out ok.
I do this on a weekday though.

[nannynick]

TangelasVine Good point about doing things on a weekday, the system does not work at weekends (or any other non-banking day).
Debit card payments in are the fastest method I think, so good to hear those are clearing quickly so payment can be made to nursery. Payment to nursery will take 3-4 working days currently.