Martin Lewis Warns 800,000 UK Parents Missing Up to £2,000 Childcare Support

Martin Lewis has warned that around 800,000 parents in the UK are missing out on up to £2,000 a year through the Government's tax-free childcare scheme, which reimburses 20% of childcare costs up to £500 quarterly per child, or £4,000 for disabled children. To qualify, parents must each earn at least £850 per month but not exceed £100,000 annually, and the scheme applies to children under 12, or under 16 if disabled. Eligible childcare services include nurseries, nannies, after-school clubs, and Ofsted-registered holiday clubs. Lewis highlighted that some parents on Universal Credit can claim up to 85% of childcare costs through their Universal Credit accounts, amounting to over £1,000 for one child or nearly £1,800 for two. He criticized aspects of the system, calling it “ridiculous” that parents earning just under £100,000 each can qualify while those slightly over do not, and is lobbying to rename the scheme to "Working Families Childcare Top-Up" to better reflect its purpose. Additionally, Lewis advised families receiving free school meals to check with local councils for holiday provisions, as councils are required to provide meals and enriching activities during school breaks.