using tax credits to pay for child to go to pre prep aged 3

[quadrophenia]

is it allowed? I mean the childcare element.

Why not? Whats the difference between sending a child to a nursery attached to a private school and daycare?

A lot of people who use day nurseries are not that rich. In fact private school nurseries are often cheaper than day care. It is a lost leader with the hope that the child will carry on into the private school.

Daycare often costs £40 to £50 a day. It easy covers the cost of a pre prep school. If she decides to continue after the term the child is five then it is different.

Your friend is not being dishonest, but savy. Prehaps if her little one is very bright then he/she is better off at the private pre prep.

her child might not even get a place at the pre prep school.

just to add, i think you need to be clear about what she's claiming, if it's the free places for every 3 year old then it's no problem at all. if she's understating her income in order to claim the child care element of child tax credits then you have a duty to report her. it's money we all pay from our wages that she's claiming. she's stealing from us all. report her.

The nursery may well be Ofsted approved and run separately to the school itself in the same way as State funded nurseries attached to primary schools are, thereby being as eligible as any other form of childcare. She could almost certainly claim LEA vouchers if the school fits the criteria and tax credits can be used for some private afterschool care too. However if she is making false claims to get any funding that is a different issue to where she chooses to spend it.

My son's pre-prep nursery is indeed run seprately to the rest of the school and lots of parents use the nursery pureley as childcare, removing their child when they turn school age.

They are OFSTEd registered and their fees are about the same as using a childminder so why not.