30hrs childcare funding

[Margo34]

Is the 30hrs childcare funding available to everyone (from the term after 3rd birthday) or is there a maximum income threshold where eligibility stops (or is negated by tax, like the tax free childcare)?

Very lucky position that we're a high earning household and one of us has gross salary that is just recently over 100k. Toddler not yet 3yo so trying to do some financial planning!

Thanks!

This explains it. £100k is mentioned....

On the current rules, you will get 15 hours from the term after your child turns 3. 30 hours is for £100k and under. You also won’t get tax free childcare as again this is for under £100k. But this is adjusted net income - so if the higher earner is only just over £100k have a look at whether pension contributions etc bring you under that.

You'll just get the universal 15 hours then.

That's good to know! Is adjusted net income the same as taxable income then I guess?

That's the word I was looking for, universal! 😂 I thought the 15hrs was for 2yo, wasn't aware this was for 3/4yo too. Helpful to know, thank you!

We’re going to be in a similar position so DH is going to pay more into my pension to bring us below the threshold (I work p-t so this would balance that).

Can you do that? Pay into a spouses pension to reduce your own tax liability? Do you have info or links you could share on this? Might be worth us considering this too.

Pension contributions, would be the obvious way. But be careful about any bonuses or 'cost of living' payments you might get.

I have a friend who got well and truly screwed by a one-off 'cost of living' bonus taking him £100 over the £100k limit.

His childcare bill went up by £650 a month.

So the bonus actually ended up costing him a considerable sum that he hadn't factored into his finances.

15 hours for some 2 year olds.

15 for all 3 and 4 year old from the term after the turn 3 until they start reception.

15 additional hours for some 3 and 4 year olds whose parents who each earn equivalent of at least 16 hours at minimum wage but not more than £100k. Both parents in a couple or one parent in a single parent famil

We’ve spoken briefly to our financial advisor who has advised it’s possible & straightforward - we do also work for the same company and have the same pension provider, plus both are higher rate taxpayers so we have quite a straightforward scenario.