£2,000 payment is owed to hundreds of thousands of households, here’s how to check if you’re one

Money Saving Expert Martin Lewis has announced that 800,000 households are eligible for a free £2,000 payment and many still haven’t claimed it yet. He is encouraging everyone to check the criteria and see if they are entitled to the payment.

The payment can be claimed as part of a saving on tax as many families are eligible for a child care saving benefit, which means that families can get up to £500 tax-free every three months (up to £2,000 a year) for each of your children. Lewis explained, as per The Mirror:

There are 800,000 people in the UK eligible for tax-free childcare, which is effectively where you get 20% off the price of childcare through Gov.uk, the savings scheme there.

Who’s eligible?

Your eligibility is based on various factors, as per Manchester Evening News:

• If you are working
• Your income (and your partner’s income, if you have one)
• Your child’s circumstances
• Your immigration status

Lewis explained that many people who are eligible for this benefit aren’t using it so if you are paying for any sort of childcare you should check. Qualifying childcare includes childminders, nurseries and nannies, plus after-school clubs and play schemes. However, your childcare provider must have signed up for the scheme before you can benefit from it. Check with your provider to see if they have already signed up.

In order to claim the benefit you must be a British or Irish citizen, have settled status in the UK or have permission to access public funds.

How to claim

To ensure your discount you'll need to set up an online account for your child on the Government's website. Once you have done this, for every £8 you pay into this account, the government will contribute £2 to pay your provider. You can use this benefit at the same time as your 30 hours of free childcare if you’re eligible for both.

You can usually get Tax-Free Childcare if you and your partner are working, on sick leave or on parental leave. If you are not working but your partner is, you may still be eligible, as per The Mirror.

Over the next three months you and your partner must each expect to earn at least:

• £1,976 if you’re aged 23 or over
• £1,909 if you’re aged 21 or 22
• £1,420 if you’re aged 18 to 20
• £1,000 if you’re under 18 or an apprentice

This is at least the National Minimum Wage or Living Wage for 16 hours a week on average.

Before claiming your discount you should first check whether you need to even be paying for childcare in the first place. In some cases, such as for parents of three and four-year-olds, you can apply for 30 hours of free childcare a week. You can then claim tax-free childcare on top of the 30 hours of free childcare.

Sources used:

- Manchester Evening News 'Martin Lewis is urging everyone to check if they're owed FREE £2,000 payment immediately'

- The Mirror 'Martin Lewis warns 800,000 families are missing out on up to £2,000 tax-free childcare'