Childcare Allowance is calculated by working out your possible entitlement based on the amount you claim and deducting any residual income if applicable from this. Residual income is net income minus allowable expenses.
Residual income is firstly applied to any Dependants Allowance entitlement available to you. If your Dependants Allowance entitlement is reduced to nil, the remaining residual income is then deducted from your Parent Learning Allowance entitlement. If there is still a remaining residual income after this, your Childcare Allowance will be reduced accordingly.
Childcare Allowance can pay up to 85% of your actual childcare costs up to a maximum amount.
The current maximum amount payable is £188.90 per week for one child and £323.85 per week for two or more children.
You must keep your receipts for all childcare costs you pay as we may ask to see them.