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Nursery School Funding

There are three main streams of funding available for child care:

Early Years Education Entitlement
Tax Credit Scheme
Child Care Vouchers

Early Years Entitlement

All parents of three and four year olds are entitled to an allocation of free sessions for their child's nursery education. This is known as the Early Years Education Entitlement (EYEE).

What does the EYEE pay for?
 It pays for up to 570 hours per academic year at any EYEE registered pre-school provider.  The EYEE is funded over three funding periods a year (Autumn, Spring & Summer).  At South Hills School Wilton we offer this funding annually across our 42 week and 51 week contracts as follows:

42 week contract: 13.75 hours per week for 41 weeks and 6.25 hours in 42nd week.

51 week contract: 11.25 hours per week for 50 weeks and 7.5 hours in the 51st week.  The advantage of stretching funding over the full period of the contract is to provide our families with more predictable cash flow.

When can my child start to receive the EYEE? 
 A child is entitled to start receiving the EYEE from the start of the funding period after their 3rd birthday.  So long as your child is enrolled with us at the beginning of the funding period after they turn 3 you will be able to make your application. This is a short form called a ‘Parental Declaration' which we will then send on to the EYEE team for you. 
 

Tax Credit Scheme

You can make a claim for childcare costs under the Tax Credit Scheme.  The actual amount will depend on your income.

For more information either go to the Inland Revenue Tax Credit website or call the Helpline on 0845 300 3900 (textphone 0845 300 3909).

Child Care Vouchers
Are you eligible?

Childcare vouchers are part of a Government scheme, which can save many parents with children aged up to 15, over £1,000 a year on childcare. It needs to be offered via employers, but many large and small companies take part.

The key is it enables you to pay for childcare out of your PRE-TAX income. While this doesn’t sound much, the benefit is huge. In fact BOTH parents are allowed to get a maximum of £243 per month worth of vouchers if they are basic rate tax payers.

The legislation for Childcare Vouchers changed on 6th April 2011. The change affects higher rate and additional rate tax payers who applied to join the scheme on or after 6th April 2011 whereby a restriction was placed on the amount of vouchers that are exempt from tax and National Insurance. All parents who applied to join the scheme up to 5th April 2011 can continue to receive the existing tax and National Insurance exemption indefinitely - regardless of earnings.

All parents could previously receive up to £55 per week (£243 per month) of vouchers which are exempt from tax and National Insurance. However, higher rate tax payers who join the scheme on or after 6th April 2011 will only be able to receive £28 per week (£124 per month) tax and NI exempt. Additional rate tax payers who join the scheme on or after 6th April 2011 will only be able to receive £22 per week (£97 per month) tax and NI exempt. Basic rate taxpayers will be unaffected, although only those that joined before April 6 2011 will still be able to receive tax exemption on the full amount if they become a higher rate taxpayer in the future.

It is worth noting for those on lower incomes that swapping salary for vouchers can impact your benefit entitlement, but the Government’s HMRC calculator can help you work out whether you’ll gain overall or not. For more info, plus how to go about getting the vouchers, read Money Saving Expert Martin Lewis' Childcare Vouchersguide.

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