Childcare benefits after redundancy

ucl1986

My wife and I both earn over 100k gross. We are both capable of bringing our taxable income to below 100k. We have a 9 month old boy (born June 2025) who will start nursery in June 2026. My wife will be made redundant in July 2026.

I'm not able to get any 30 hours childcare benefit for Apr26-Aug26 since i will be on paternity leave for part of this period.

I am planning to apply for 30 hours for the period 1Sep26-31Dec26. I can make this application in April 2026 (when my wife is still working) i.e. we would be eligible at the time of applying. My question is, if she is made redundant in July 2026, can we still claim 30 hours childcare benefits for this period? or would this be clawed back?

I'm also not clear as to the grace period for redundancy. Is it 30 days, or is it until the end of the period?

Thanks in advance for any answers/help.

wolvoman

Unless you both earn way beyond £100k, why are you not already taking steps to put your income below that level and avoid paying 60%+ rates of tax?

Exodi

ucl1986

I am planning to apply for 30 hours for the period 1Sep26-31Dec26. I can make this application in April 2026 (when my wife is still working) i.e. we would be eligible at the time of applying. My question is, if she is made redundant in July 2026, can we still claim 30 hours childcare benefits for this period? or would this be clawed back?

I'm also not clear as to the grace period for redundancy. Is it 30 days, or is it until the end of the period?

Personally I'd leave it until right near the end of the period (technically you could apply by the 31st August, though the nursery will likely impose their own deadline of mid August). The reason is to see if your wife can get another job. It's a benefit for working parents and applying for the free hours is not a one-off process, you will need to complete a declaration every 3 months confirming you are both working and expect to earn at least 2.5k (equivalent to 16 hours at NMW) - obviously if she's not working you couldn't declare that she's expected to earn the relevant income. I don't think it's a problem with it being potentially clawed back, it could be seen as benefit fraud.

Newbie_John

We went through that as well and I think the grace period varies by council but it can be much longer than 1 month.

So if she's made redundant in July then you are still eligible for childcare till end of August.

If by end of August she finds a job with confirmed start date let's say on 1st October - then you are covered as well as you fall under category "about to start" so eligible till end of the year.

Id probably double check your council requirements as this area is very tricky.

born_again

https://forums.moneysavingexpert.com/discussion/6658692/childcare-benefits-after-redundancy

Has your wife secured a new role or likely too?

As there would be no need for nursery in June 26 other than a short period prior to redundancy. Your wife would then be free to look after your 1 year old child.

ucl1986

Thanks for the responses so far.

My wife has not secured a new role. Best case is she starts a new role in December, but it could take as long as early 2027 (judging by her colleagues who have also been made redundant earlier).