Tax credits and choice of childcare

[flabbyapronbelly]

Have been on the HMRC and Entitled to and the results seem to be the same. Just wanting to put it to you lot as doesn't seem to make much sense to me.
Have a choice of 2 nurseries for my ds. He will be doing 2 full days at a private nursery.
1st nursery - nice but not that fancy is £85 per week.
2nd nursery = lovely, excellent facilties, big name owned, etc. Costs £105 per week.
Now according to those websites I will only gain £4 a week by putting him in the cheaper nursery as would receive more ctc if he went to more expensive one and is obviosuly a bit of a no brainer.
Does this sound right to you? I know this may all be shaken up by the new government, but wanted to check it may be correct as things stand at the moment before I go and visit the 2 nurseries and make the decision.

If you are entitled to help with your childcare costs, you can get up to 80% paid. If you are only gaining £4 by putting him in the cheaper nursery, then you are getting 80% of your nursery costs paid.

Therefore, you are going to pay either £17 per week towards the nursery costs (the £85 per week one) or £21 per week towards the nursery costs (the £105 per week one), leaving the remaining £68 or £84 paid by tax credits.