Childcare govt top up - how does it work?

[Hotyogahotchoc]

How does this work?

I understand the govt will put in £2 for every £8 but how does this work in practice?

If nursery fees were £1000 per month I would just put in £800 and the rest would be topped up? Do I just put it in the account and then get a top up and pay it to the nursery or do I just pay £800 to the nursery and then it is topped up?

What if fees are £1130 a month?

And the top up is only £500 a month

So I need to pay (£1130 x 3) - £500 for three months?

So £2890 per 3 months is £963 a month and is that how much I put in the account for the date fees are due?

It's hardly £2 for every £8 if it's limited to £500 (which i have wonky just seen!)

@Hotyogahotchoc

Our nursery fees are £1163.50 per month, so the way I work it out is the max top up of £500/quarter is £166.66 per month. £1163.30 minus £166.66 equals £996.84

I think this makes more sense than how I have done it

Unfortunately, just to make things more confusing, the government don't actually pay it that way i.e. averaged out. They pay the full 20% on the first month and second month and then contribute nothing every 3rd month in the quarter because the £500 has run out. That doesn't actually matter though if you average out your own payments in, but it's a faff to do the calculations

Unfortunately, just to make things more confusing, the government don't actually pay it that way i.e. averaged out. They pay the full 20% on the first month and second month and then contribute nothing every 3rd month in the quarter because the £500 has run out.

Right! Ok

I get it but after waking up every 2 hours with the baby it's taking time to go in

It is confusing but after a few months you get the hang of ita

I'm sure I'll work it out

You have all been most helpful and it makes much more sense now

Thank you

There is a tax free childcare calculator that works it out for you

Thanks I think someone mentioned that further up and I forgot

I'll look for the calculator