One-third of parents ‘terrified’ for the future

A third (33%) of parents with children under 18 are afraid for their financial future, a study, a study by Creditspring has revealed.

 Over a quarter (27%) are likely to start a side hustle or second job to make ends meet, while more than a fifth (22%) will have to borrow money in the next six months.

The research also found that:

• 21% of parents think they will have to rely more and more on benefits to survive.
• Over a tenth are having to take time off work to look after their children during the school half term as they can't afford holiday clubs or childcare.

Worsening money situations

Three in ten (30%) parents with children aged under 18 admit that this is the most financially unstable they've ever been.

A fifth (19%) have turned to state benefits during the last year, while 15% have sought support from debt advice charities.

Half-term causing extra strain

Half-term is a particularly challenging time for family finances – 15% of parents say that increased costs of meals and clubs put more of a strain on budgets during school holidays compared to term time.

Many parents are worried about  their children missing out when they can't afford to go to clubs during half term and other school holidays.

Help for parents

If you're a parent struggling to make ends meet, there are several support schemes you could be entitled to.

Child benefit

You can claim child benefit if you’re responsible for bringing up a child who is under 16 (or under 20 if they’re in approved education or training).

If you or your partner earn no more than £50,000 a year, you’ll get the full amount of child benefit providing:

• the child lives with you
• you're paying at least the same weekly amount to look after them as provided in child benefit

Tax-free childcare

Everyone in the UK can get tax-free childcare to help cover the costs of looking after a child.

You can get up to £500 every three months (£2,000 a year) per child. If you have a disabled child, you can get up to £1,000 every three months (4,000 a year).

To claim tax-free childcare, set up an online account for each child and for every £8 you put into this account, the government gives you £2 to pay for childcare.

This scheme only covers childcare provided by this list of approved services:

• registered childminder, nanny, playscheme, nursery or club
• childminder or nanny with a registered agency
• registered school
• home care worker working for a registered agency

Childcare costs

If you’re on universal credit (UC), you might be able to get a portion of UC for childcare costs. This can help cover the costs of holiday clubs, after-school clubs and breakfast clubs.

To get this, you pay for the childcare first, then declare the amount you paid to UC. You may be able to get some of the cost back through your UC payment.

You might be entitled to help for up to 85% of your childcare costs – that’s a maximum of:

• £1,014.63 a month for one child
• £1,739.37 a month for two or more children

If you have a partner, you can only claim this if they work too or aren’t fit to mind the children.  

Help for single parents

If you’re raising a child alone, read our guide on the support available for single parents.

Holiday activities and food programme

In England, the holiday activities and food (HAF) programme offers free holiday clubs with meals to children from low-income families during school breaks.

The HAF programme aims to enhance kids’ overall wellbeing by offering healthy food, structure, physical activity and fun over the holidays, while supporting their families.

You can check whether your child qualifies for a place and find out how to book with your local council.

Food vouchers

Depending on where you live, you might be able to get £15 a week in food vouchers over the holidays if your child is eligible for free school meals.

Check whether your local council offers them and how to get them.  

Household support fund

If you’re finding it hard to afford childcare because of the cost-of-living crisis, you might be able to get help from the household support fund.

This government-funded scheme offers financial help for vulnerable households through local councils. Find out what childcare support your local council could be offering through the fund.

Are you getting all the benefits you’re entitled to?

Check you’re getting all the help you’re eligible for with our free online benefits calculator.