For individuals on low incomes, Working Tax Credits provide a top up to wages. For working parents, extra help is also available through a Childcare Element, for which they receive payments directly. For one child, this can be worth up to £122.50 a week towards childcare costs of £175 or more; for two or more children, this can be worth up to £210 a week towards childcare costs of £300 or more. Lower childcare costs are up to 70% funded.

As a guideline, to claim the Childcare Element of Working Tax Credit, you must currently be:

• A lone parent working 16 hours or more per week;
• Part of a couple with both partners in paid employment of 16 or more hours per week;
• Part of a couple with only one partner working 16 or more hours per week, where the other is an in-patient in hospital, in prison or incapacitated for childcare purposes.

Couples with a joint income above a certain level will not be able to claim (for the most up to date criteria, please ask you nursery manager).

Try the online Tax Credit Calculator or visit your local Citizens Advice Bureau to find out how much the Childcare Element might be worth to your family.