With the summer holidays adding extra costs for food, fuel and childcare, many families are looking for ways to boost their income. There are several government schemes and practical tips that can help, but many households are missing out on what they're entitled to.
Free Childcare and Tax-Free Top-Ups
Parents of children aged nine months to four years old in England may be entitled to 15 to 30 hours a week of free childcare. These hours usually cover term time over 38 weeks, but can be spread out over the year by using fewer hours per week. To qualify for the full 30 hours, each parent must earn the equivalent of minimum wage for 16 hours a week on average, but less than £100,000. Parents of three and four-year-olds get 15 hours a week free as standard, regardless of employment status. If your child is two, you can get 15 hours a week if you claim certain benefits.
Tax-free childcare is another scheme where for every £8 you pay in, the Government adds £2. The money, held in an online account, must be spent on childcare. Eligible families can get up to £500 every three months (£2,000 a year) per child, or £1,000 every three months (£4,000 a year) for disabled children. Your child must be aged 11 or younger, or 16 or younger if disabled, and you must earn at least minimum wage for 16 hours a week but less than £100,000. If you've been self-employed for less than 12 months, there's no minimum income requirement.
Claim Child Benefit and Other Entitlements
Nearly a third (31.2%) of eligible parents do not claim Child Benefit before the baby's first birthday. You can claim if you're responsible for a child under 16, or under 20 if they're in approved education or training. It's worth £27.05 a week for the first child and £17.90 a week for each subsequent child. If you or your partner earn over £60,000, you must repay 1% of Child Benefit for every £200 over that threshold, and 100% if you earn over £80,000. There's no limit on the number of children you can claim for, but only one person can claim per child.
Grandparents who look after grandchildren this summer could claim Specified Adult Childcare Credits to fill gaps in their National Insurance record, which affects state pension entitlement. You must have been under state pension age (currently 66, rising to 67) when caring, and the child must be under 12, or 17 if disabled. The parent must be entitled to Child Benefit and transfer their National Insurance Credit to the grandparent. Claims can be backdated to 2011.
Extra Cash From Selling and Switching
A summer clear-out can generate extra cash, and you usually don't pay tax on selling unwanted personal items. Teens can sell their belongings too, but under-18s can use Vinted only if a parent or guardian sets up the account and supervises activity. You must be 13 or older to sign up to Depop.
Switching bank accounts can earn up to £220, with deals from HSBC (£220), Barclays (£200), NatWest (£200), First Direct (£175), Nationwide (£175), Bank of Scotland (£175), and Co-op (£125 upfront plus £25 a month for three months). You may need to meet criteria like depositing a certain amount or setting up direct debits. Use the free Current Account Switch Service (CASS) to move your balance and direct debits. But check the new account's features, and avoid multiple switches if you're about to apply for a mortgage, as each application shows on your credit file.
