Here’s the answer up front. What is considered child care costs depends on who provides the care, when it happens, and how it’s linked to your work or studies. If your provider is registered and the care supports your job or education, there’s a good chance it counts. That means you could claim back a big chunk of the money you spend—but only if the setup meets the rules. Knowing what qualifies helps you budget better and avoid wasting money on care that doesn’t count.
Why It Matters to Know What Counts as Child Care Costs
Many UK families miss out on child care support simply because they don’t know the rules. They think they can claim for any babysitter or that all clubs qualify. That’s not the case. HMRC and Universal Credit follow clear rules. They only allow claims for certain settings, providers, and purposes. If you get it wrong, you could face delays, rejections, or even repayments.
Understanding the list helps you save more and stress less.
What Is Considered Child Care Costs Under Universal Credit
Universal Credit can help cover up to 85% of childcare costs. But only if the provider is registered. This includes:
- Nurseries on the Early Years Register
- Registered childminders
- Breakfast or after-school clubs linked to schools
- Holiday play schemes run by councils or Ofsted-approved groups
- Nannies listed on the Ofsted register
You must use the care to help you work. You can’t claim if you’re just taking a break or running errands. The same rules apply whether you’re working full time, part time, or on a zero-hours contract. If your child is of school age, you can still claim for wraparound care as long as the provider is approved.
What Doesn’t Count as Eligible Child Care Costs
You can’t claim money back for informal babysitting. That includes grandparents, friends, or neighbours—even if you pay them. HMRC needs proof that your provider follows legal care standards. The same goes for:
- Tuition classes (like maths or music lessons)
- Sports clubs that don’t offer wraparound care
- Overnight camps or residential trips
- Care used while you’re not working or studying
Even if it feels like care, the setting must meet the right checks and rules.
How the Tax-Free Childcare Scheme Defines Valid Costs
Tax-Free Childcare adds 20% to what you put into a special account. You must use the money for registered child care. The scheme allows up to £2,000 of help per year, per child. If your child has a disability, the limit goes up to £4,000.
You can use the account for:
- Nursery fees
- Registered nannies
- Childminder sessions
- After-school clubs
- Holiday schemes
The provider must appear on the government’s childcare register. You can’t use the funds for school tuition, unregistered babysitters, or casual weekend care.
What Is Considered Child Care Costs When Claiming Through Work
Some employers offer salary sacrifice or child care vouchers. This cuts your tax bill but only works with registered care. Even if you earn above the Universal Credit limit, you may still save by using these schemes. Always check if your employer offers them.
The same rule applies: only spend on care that meets HMRC rules. If not, you may get taxed on the amount or face problems at year-end. Some older schemes still run, even though Tax-Free Childcare has replaced them for new joiners.
List of Acceptable Providers You Can Claim For
Here’s a simple list of care types you can usually claim for in the UK:
- Registered nurseries and pre-schools
- Ofsted-registered childminders
- After-school clubs attached to schools
- Registered nannies (must be on the Ofsted list)
- Holiday play schemes run by registered providers
- School nurseries, if fees are not part of school funding
Always ask for the provider’s registration number. You’ll need it to complete claim forms and to prove eligibility.
Situations Where You Can’t Claim for Child Care
Let’s make it clear with real-life examples. You can’t claim for:
- Your sister watching the kids for cash
- A local teenager doing babysitting
- A sports-only club that ends before work does
- A family member who lives with you
- Private tutors or piano teachers
- Travel to and from child care
- Meals or snacks, unless included in the provider’s fee
If it doesn’t meet the claim rules, it won’t count—no matter how much it helps you.
Claiming While Studying or Training
Some students can also claim help with child care. If you study full time and meet age or income rules, you may qualify through:
- Care to Learn (for parents under 20)
- Learner Support Fund (for those over 20 in FE colleges)
- Student Finance England (for higher education students)
Each scheme checks income, study hours, and course type. They also require your provider to be registered. The goal is to help parents study without giving up care quality or safety.
How to Track and Prove Your Costs
Whether you use Universal Credit or Tax-Free Childcare, you need proof. Keep hold of:
- Invoices or payment records
- Hours booked and attended
- Registration details of the provider
- Receipts for any top-up payments
Update Universal Credit with your monthly costs on time. If your provider changes, update your account right away. Missing a deadline may delay your payment or reduce the amount. Double-check your details match what the provider sends.
What Happens if You Claim for the Wrong Type of Care
Mistakes happen, but they can carry big risks. If you claim for unapproved care, HMRC or DWP can:
- Refuse or delay your payments
- Ask for the money back
- Fine you for incorrect details
This happens often with families who trust friends or relatives to watch the kids. Even if they pay for it, the setup still won’t count unless the person is registered. Always check before you claim.
Can You Claim for Child Care While on Maternity Leave?
While on maternity or paternity leave, you may still get help with care. This depends on your plans to return to work. Some schemes allow you to use free hours or Tax-Free Childcare while on leave. You can also bank credit in your Tax-Free account.
Universal Credit rules are tighter. You must be in paid work or have firm return dates to qualify. Use this time to plan ahead and check your care setup still meets the rules.
Free Child Care Hours and What They Cover
England gives families 15 or 30 hours of free child care depending on income and age. These are for 38 weeks a year. You can’t claim extra support for those same hours again.
What is considered child care costs in this case comes down to anything over those hours. You can still claim for extra sessions, meals, or holiday care. Your provider must break down what’s free and what’s extra. This makes it easier to know what to claim for.
Tips for Making the Most of Child Care Support
Here are quick ways to get more from what you spend:
- Choose providers who accept both Tax-Free Childcare and free hours
- Claim Universal Credit for extra hours outside the free ones
- Combine care types, like nursery plus childminder
- Log every payment and update claims monthly
- Check for student grants if you’re in college or university
Using every route helps you stretch your budget without cutting care quality.
Who to Contact if You’re Not Sure
Your local council can confirm if a provider counts as registered. You can also check Ofsted’s website for the latest listings. HMRC runs a helpline for Tax-Free Childcare. Jobcentre Plus can guide you on Universal Credit. Don’t guess—ask. Support staff often help fix claims that nearly got rejected.
Final Thoughts
Child care doesn’t come cheap. But you don’t have to carry the cost alone. When you know what is considered child care costs, you take control of your budget. You claim what’s fair, avoid mistakes, and protect your peace of mind. Make sure every pound you spend works as hard as you do.
Want to feel confident with your child care knowledge? Enrol now in our online Child Care courses at Unified Course and learn how to make the most of your support.
