Last updated 05:34, Friday, 18 July 2008

Cash-strapped parents should ensure they received all the financial help entitled to them, the Government has said.

Childcare: Working parents are missing out on much-needed help

Ministers have teamed up with money campaigner Martin Lewis to encourage mums and dad to find out if they are missing out on potentially £1,000s worth of tax credits.

It comes ahead of the summer school break – a time when resources can be stretched more than ever as parents juggle a working life with looking after restless children.

Mr Lewis, founder of MoneySavingExpert.com, said: “We are coming up to the summer holidays and people forget that means rapidly increasing childcare costs.

“What are parents going to do during the day, take time off work? Put them in child care? Drop them off with relatives?”

“In these days of the four horsemen of the financial apocalypse – economic slowdown, the credit crunch, inflation and house price falls – it is difficult for parents to take time off work.”

In a bid to help them, the money expert has devised a four-step plan to ensure that parents are not missing out.

He points out that those working more than 16 hours a week can claim up to 80 per cent of their childcare costs back when they use Ofsted registered childcare.

Step two is checking to see if you are eligible for childcare vouchers. Many employers allow parents to pay for childcare out of pre-tax income through a Government scheme. This can save up to £1,000 a year.

Mums and dads are also urged to check out what free clubs and activities are offered by local schools over the summer months and utilise free early learning classes for children aged three and four.

Beverly Hughes, Minister of State for Children, Young People and Families said: “Getting the right childcare over the summer period is important for parents and children.

“That is why today we are urging parents to make sure that they are claiming all the financial help available to them. It makes sense for parents to take advantage of what is available to them from tax credits to the free early learning entitlement for younger children.

“There is a range of options to fit different childcare needs and parents can mix and match to find the perfect fit.

“The help is there and so we want as many parents as possible to start making use of it.”