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<p>The department knows that the cost of childcare is a key concern for parents, which
is why the government has made an unprecedented investment in childcare over the past
decade, with over £3.5 billion spent in each of the past three years on early education
entitlements.</p><p>The government’s range of childcare offers includes 15 hours free
early education for all three and four-year-olds, regardless of parental income or
working status. This helps children to develop social skills and prepare them for
school, regardless of their background.</p><p>In 2013, the offer was extended to the
most disadvantaged two-year-olds, providing a developmental boost to disadvantaged
children who are less likely to use formal childcare, but who stand to benefit from
it the most.</p><p>In 2017, the department introduced 30 hours free childcare for
working parents of three and four-year-olds. To be eligible for this, a lone parent
must earn from just over £7,400 a year, and a couple, where both parents are working,
from just over £14,800 per year, to access 30 hours. This can save parents over £6,000
per year.</p><p>The department have also introduced tax-free childcare, which is available
for working parents of children aged 0-11 (or up to 16 if their child is disabled),
with the same income thresholds as 30 hours free childcare. This scheme can save parents
up to £2,000 per year (or up to £4,000 for children with disabilities) and can be
used alongside 30 hours free childcare.</p><p>Working parents on Universal Credit
may also be eligible for help with up to 85% of their childcare costs through the
childcare element of Universal Credit. This is subject to a monthly limit of £646
for one child or £1108 for two or more children aged 0-16.</p>
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