UK funded 15 hours for 2 year olds

[Rae86]

Hi can anyone help me understand how much money i should be paying into my childcare account for the 15 funded hours?
From september i will be sending my 2 year old into nursery for 4.5 hours four mornings a week and i'm confused as the childcare account says once i pay in money into this account the government will pay in their contribution but if i withdraw the money they will withdraw their funding? i am so confused as in the past the nursery just received the free hours under the 30 hours for 3 year old scheme

Please help?!

Are you mixing the funded hours up with Tax Free Childcare?

The funded hours are separate from the tax free childcare which it sounds like you are reading about. The nursery should provide you with an invoice detailing how much you need to pay after funded hours have been deducted. The tax free childcare will pay for 20% of that (up to a limit). So say the bill is £100, you pay £80 into the account and the government add in £20. You then send that £100 to the nursery.

In terms of withdrawing - it means if you pay the childcare provider through the account you can access both your money and the government top up. If you get to withdraw the money into your own account you can only take out what you put in

I think I am as I've had messages to say I'm eligible for both! Thank you

It doesn't say how many hours I am eligible for? But as my son is 2 I'm guessing 15

So can I do both then? Tax free and funded 15 hours?

Yes you'll get 15 hours funded then you can use your tax free childcare account to pay the nursery fees for additional hours or charges on top.
Eg. the nursery bill you for £100 on top of the funded hours, you put £80 in your tfc account, the govt put it £20 and you pay it to the nursery.

Thank you all so much!
That's amazing

I'm not sure that is quite right.

The government put in 20% of what you put in, not 20% of the bill.
So oif you put in £80, they will put in 20% of that, ie £16, giving a total of £96 in the account.
Don't get caught out and not have enough to pay the bill

No, they pay 20% of your bill eg you put in £8 they put in £2.

But they don't see.your bill, how do they know?

They top up by 25% of what you pay in, which equates to 20% of what you pay out. Eg you pay in £80, they add £20, you pay out the £100.

OP - on the withdrawal, the point is you have to pay your provider through the TFC online account, you can’t withdraw the money and pay them another way.

They put in 25% of what you put in.

You put in 80% of your bill and they put in the extra 20% of your bill.

They put in an additional 25% of whatever you pit in, with will ne 20% of the total. £2 for every £8 the parent puts in.

The don't need to see the bill, the parent works it out.

Do you use tax free childcare @Stopthatknocking ?

No, but I work in the nursery finance side.
I never knew they paid 25%.
Thats really useful, thanks.

Whatever your bill is from the nursery times it by 0.8, pay that to your tax free account, the government top up the rest to a max of £500 every 3 months.

Nursery Bill = £100.00 x 0.8 = £80.00, government top up £20.00

From your tax free account you set up a payment to your chosen provider

They know how much you put in - you put in 80% of your bill. If you Google tax free childcare the government website explains it clearly.