Childcare funding

[ExpectingJune2026]

Hi there,
Just after some advice if anyone has had a similar situation.
I am expecting my 3rd child in June 2026 and currently work full time so my mind is already thinking of my return to work.
With my first two children, I used a childminder for childcare until they reached pre school age, which worked perfectly as the childminder I used was also my sister ….! She is a registered childminder and has been for 10+ years so my children were on her books and still are for school holidays etc. I paid her the exact same as other parents and used my government tax free childcare account in addition to this saving me 20% (this was before the extra funding came into play)

However, now we have the extra funding in place, 30 hours for working parents from 9 months I believe, which is brilliant, my understanding is I can’t use this funding with my sister as she is family.
I am absolutely gutted about this understandably , I just wondered if anyone had contested this? I understand why the rule is in place, however I do believe this scenario is different as she already is registered childminder.

Would love to know others thoughts… thanks for reading. :)

I don’t have any helpful advice or information but I am wondering how they’d know she’s your sister. As long as she’s registered and you are paying the same as everyone else

You can’t challenge it. The scheme terms are clear that they do not consider childcare provided by a relative to be “approved” childcare, even if that relative is an established childminder or nanny. Your sister can care for your child but you can’t claim the funded hours for the care.

Its possible that you’ll pass under the radar for a pretty long time but your sister would have her ability to accept funding from anyone removed if she was caught, which would probably end her business; and you’d have to pay back everything you claimed.

Thank you for your response, that’s really helpful.

It’s a little ironic that they won’t accept the funding for a relative but using 20% tax free childcare is absolutely fine! You’d think it would be a rule across the board in that sense.

I would not even risk doing it & neither would she, it is not worth that risk. On the hunt for a new child minder it is :)

Since the funding covers about two days a week, could you use you sister 3 days and another setting for the two days?

Most places won’t let you use ‘just’ the funded hours, there will be a minimum number of days.

op just commiserating. That’s really annoying.

So I should be getting 30 hours funding (can’t grumble at that!) so will cover the 5 days and il pay a top up for the extra extras.

Its 30hrs termtime only, so about 21 hrs year round.

It’s just a huge shame , as both my older girls have been with her since they were 9 months old,(before all the funding came in) but the positives I guess are this is more or less totally funded, so I can’t really complain.

Yes, my assumption would be I could use 30 hours during the week term time and pay for holidays / use annual leave … but please correct me if I’m wrong as this is new to me :)