Category: Personal

Childcare grants

Juggling higher education and parenting? Childcare Grants can ease the pressure by covering up to 85% of your childcare costs. If you're a full-time student with young children, this grant could make a real difference—and it doesn’t need to be repaid.

Childcare Grants provide financial support to help students cover the cost of childcare while studying. These grants are aimed at students who are parents or guardians, easing the financial strain of childcare during their higher education journey.

You may be eligible for a Childcare Grant if you:

• are a full-time higher education student; or
• have children under 15, or under 17 if they have special educational needs.

The grant:

• does not need to be repaid; and
• is provided on top of other student finance.

To apply for a Childcare Grant, you must first be eligible for student finance.

The amount you receive depends on:

• Your household income
• The number of dependent children

For the 2025-26 academic year, you can receive 85% of your childcare costs or a fixed maximum amount, whichever is lower. The maximum you can receive is:

• Up to £199.62 per week for one child
• Up to £342.24 per week for two or more children

For example, if your childcare for one child costs £100 a week, you’ll receive £85 (85% of your costs). If the childcare costs £250 a week, you’ll receive £199.62, as 85% of £250 is £212.50, which exceeds the maximum weekly amount.

You can apply for Childcare Grants as part of your main student finance application.

Child Benefits for over 16s

From April 2025, Child Benefit increases to £26.05 for the eldest child and £17.25 for others. Payments stop after a child turns 16 unless they continue in approved education or training. Parents must update HMRC by 31 August to avoid disruptions.

Taxpayers entitled to the child benefit should be aware that HMRC usually stop paying child benefit on the 31 August following a child’s 16th Birthday. Under qualifying circumstances, the child benefit payment can continue until a child reaches their 20th birthday if they stay in approved education or training. This must be confirmed to HMRC, or payments will stop.

Approved education must be full-time, with more than 12 hours per week of supervised study or course-related work experience. Approved education includes A levels, T levels, Scottish Highers, NVQs up to Level 3, home education (if started before 16 or after 16 with special educational needs), study programmes in England, and pre-apprenticeships. The course must be started before the child turns 19.

Child Benefit cannot be claimed if your child is:

• Studying for a university degree or BTEC Higher National Certificate (advanced course)
• On an apprenticeship (unless it’s a Foundation Apprenticeship in Wales)
• Undertaking a course with an employer’s agreement (e.g., to secure a job or gain skills for an existing job)

Approved training should be unpaid and can include:

• Wales: Foundation Apprenticeships, Traineeships, or the Jobs Growth Wales+ scheme
• Scotland: The No One Left Behind programme
• Northern Ireland: PEACEPLUS Youth Programme 3.2, Training for Success, or Skills for Life and Work

Courses that are part of a job contract are not approved.

HMRC sends a letter in your child’s last year at school asking you to confirm their plans. The letters include a QR code which, when scanned, directs them straight to GOV.UK to update their claim quickly and easily online. This can also be done on the HMRC app.

Parents have until 31 August 2025 to tell HMRC that their 16-year-old is continuing their education or training, and to continue receiving Child Benefit. No child benefit is payable after a young person reaches the age of 20 years.

Student and postgraduate loan thresholds and rates

From 6 April 2025, new thresholds for student loan repayments will take effect, impacting borrowers across the UK. Whether you're on Plan 1, Plan 2, Plan 4, or repaying a postgraduate loan, here’s a breakdown of the latest changes and what they mean for you.

Student loans are a key component of the government’s financial assistance package for individuals pursuing higher education in the United Kingdom. These loans are designed to support students with their living and tuition expenses while studying. The responsibility for collecting repayments from borrowers in the UK lies with HM Revenue & Customs (HMRC). For those working outside the UK tax system, the Student Loans Company (SLC) is tasked with managing the repayment process.

Effective from 6 April 2025, the thresholds and repayment rates for various student loan plans will be as follows:

• Plan 1: £26,065
• Plan 2: £28,470
• Plan 4: £32,745

The loan repayment terms for students who commenced their courses before 1 September 2012 are categorised under 'Plan 1'. Those who began their studies after 1 September 2012 are subject to 'Plan 2' terms. Under these plans, repayments are set at a rate of 9% of income above the respective threshold.

Student loans taken out by borrowers in Scotland are classified as 'Plan 4' loans, with a repayment threshold of £32,745, and the repayment terms are similar to those of Plan 2 loans.

For postgraduate loans, the threshold remains unchanged at £21,000, with repayments deducted at a rate of 6% of income above this amount.

These loans are subject to varying interest rates, which are determined by the Retail Prices Index (RPI) and are also influenced by the borrower's income level. Specifically, the interest rate for Plan 2 repayments is variable, calculated as RPI plus an additional percentage that fluctuates according to income. The interest rates applied to Plan 1 repayments are usually significantly lower than those for Plan 2.