Back to School 2026: Financial Checklist for Parents
September 2026 brings children back to school — and a set of financial tasks for parents. Free childcare hours, Tax-Free Childcare, Child Trust Fund maturity, Child Benefit claims, and more.
Quick answer
September is one of the busiest financial admin months for parents. Free childcare entitlements change, new school years bring new costs, and several government schemes require your attention before the autumn term starts. Here is the checklist.
Benefit Entitlement Checker (Universal Credit)
Estimate your monthly Universal Credit using 2025/26 standard allowances, child elements and the 55% taper.
Open Benefit Entitlement calculator1. Free childcare hours: who gets what in September 2026
All 3 and 4 year olds
15 free hours per week (38 weeks per year, typically spread as 570 hours/year) — available to all families regardless of parental employment or income. This has been universal since 2010.
Working parents of 3–4 year olds: 30 hours
Both parents must be working at least 16 hours per week at the National Living Wage equivalent (£12.71/hr in 2026/27 = approximately £203/week each). Each parent must earn less than £100,000 adjusted net income.
The 30-hour entitlement replaced the 15-hour for eligible families from 2017. For September 2026, you should have applied by late July 2026 via Childcare Choices (childcarechoices.gov.uk).
Working parents of 2–3 year olds: 15 hours (since September 2024)
Extended from September 2024, working parents of children aged 2–3 years are entitled to 15 free hours per week. This was a phased extension of the 30-hour policy. The same eligibility rules apply (working 16hrs+, under £100k income).
Important: the free hours cover a specific number of hours in nursery or registered childminder settings. They do not extend to all childcare. Any hours above the free entitlement are charged, and those are where Tax-Free Childcare applies.
2. Tax-Free Childcare: what it covers for school-age children
Once your child starts primary school, you lose the free childcare hours — but Tax-Free Childcare continues until the child turns 12.
What TFC covers for school-age children:
| Covered | Not covered |
|---|---|
| Registered after-school clubs | School fees (state or independent) |
| Registered breakfast clubs | Travel to school |
| Registered holiday clubs | Uniforms |
| Registered childminders (for school pickups) |
The government tops up 80p per £1 you spend, up to £2,000/yr per child (£4,000 for disabled children). You pay via your TFC account at gov.uk/tax-free-childcare.
September restart: reconfirm your TFC account
You must reconfirm your TFC eligibility every three months. If your account lapsed over summer, reconfirm before September to ensure you can pay after-school club fees via TFC from September.
Salary Sacrifice Calculator
Calculate how much tax and National Insurance you save by making salary sacrifice contributions to a pension, cycle to work scheme or EV car scheme.
Open Salary Sacrifice calculator3. Child Trust Funds coming to maturity
Children born between 1 September 2002 and 2 January 2011 turn 18 between September 2020 and January 2029. If your child is in this cohort and turning 18 this autumn, their CTF is either already mature or coming up.
Finding a forgotten CTF
Many CTFs were opened by the government automatically if parents did not open one. If you do not know where the account is:
- Go to gov.uk/child-trust-funds and use the online tool.
- You need the child's National Insurance number (issued automatically around age 16) or their date of birth and an NI number for the parent who received Child Benefit.
- HMRC will identify the CTF provider.
What to do once the CTF matures
- The CTF account automatically becomes an adult ISA at 18 — the tax-free status is maintained.
- The 18-year-old can transfer the ISA to a new provider if they want better rates or a different investment platform.
- Transfers use the ISA transfer process (not withdrawal and reinvestment) — this preserves the tax-free status and does not use the annual ISA allowance.
The average CTF value varies enormously depending on contributions and investment performance. HMRC data suggests average values are in the range of £1,500–£3,500 for accounts with no additional parent contributions, significantly more for accounts where parents topped up regularly.
4. Child Benefit: claim now if you haven't
Child Benefit in 2026/27:
- First child: £27.05 per week (£1,407.60/yr).
- Each additional child: £17.90 per week (£930.80/yr).
Why you must claim even if you earn over the threshold:
If the higher earner in your household earns between £60,000 and £80,000, the High Income Child Benefit Charge (HICBC) claws back some or all of Child Benefit via Self Assessment. Above £80,000, the full benefit is repaid.
But even if you repay all of it: you should still claim. Here is why:
The NI credits reason
A parent who claims Child Benefit and is not working receives National Insurance credits toward their State Pension. For each year you claim Child Benefit for a child under 12, you receive one qualifying NI year — free. This is worth approximately £6.89/week of State Pension for life.
If you opt out of claiming or never claim:
- You forfeit the NI credits.
- At Class 3 voluntary NI rates (£956.80 per missing year), each missed year costs nearly £1,000 to buy back.
- Miss 5 years: £4,784 to buy back, or lose £6.89/week of State Pension permanently.
The rule: always claim Child Benefit. If you don't want to receive the money because of HICBC, complete the "not receiving" election via HMRC — you remain on record as a claimant (preserving NI credits) but do not actually receive the payments.
New for school starting September 2026
If you have a child starting school this September who was born after your last Child Benefit claim, you need to contact HMRC Child Benefit office to add them to your claim.
ISA Calculator
Project ISA savings growth over time with the UK £20,000 annual allowance.
Open ISA calculator5. HICBC: check your position and consider salary sacrifice
The HICBC threshold from Spring Budget 2024:
| Higher earner's income | HICBC position |
|---|---|
| Below £60,000 | No charge — full Child Benefit kept |
| £60,000–£80,000 | Partial claw-back: 1% per £200 above £60,000 |
| Above £80,000 | Full Child Benefit repaid |
Example: salary £70,000, two children
- Child Benefit: £27.05 + £17.90 = £44.95/wk = £2,338/yr.
- Income above £60,000: £10,000.
- HICBC: (£10,000 ÷ £200) × 1% = 50% of £2,338 = £1,169 repaid.
- Net Child Benefit kept: £2,338 − £1,169 = £1,169.
To remove the HICBC entirely: reduce adjusted net income below £60,000 via pension contributions or salary sacrifice. At £70,000, a £10,001 pension contribution restores the full £2,338 Child Benefit — and gets £4,000 in income tax relief. Total annual saving vs no action: approximately £6,338.
6. Universal Free School Meals: check entitlement
All pupils in Reception to Year 2 (ages 4–7) in state schools receive Universal Free School Meals — no application needed.
For older children, means-tested Free School Meals apply if the household receives qualifying benefits (Universal Credit with net earnings below £7,400, some legacy benefits). Apply via your local council.
Back-to-school cost summary
| Expense | Typical cost | Relief available |
|---|---|---|
| Nursery (term-time) | £600–£1,200/mo | Free hours + TFC |
| After-school club | £80–£200/mo | TFC |
| Holiday club | £400–£800/summer | TFC |
| School uniform (secondary) | £200–£500 | None (VAT on adult sizes) |
| School trips (annual) | £100–£500 | None |
| Free school meals (Yr 3+, eligible) | £0 | Means-tested |
Sources
Frequently asked questions
What free childcare hours are available when my child starts nursery in September 2026?
All 3 and 4 year olds are entitled to 15 free hours per week. Working parents of 3–4 year olds where both earn at least 16 hours per week at NMW (each below £100,000) get 30 free hours. Working parents of 2–3 year olds (expanded from September 2024) get 15 free hours if both parents meet the working criteria.
Does Tax-Free Childcare cover after-school clubs?
Yes. Registered after-school clubs, breakfast clubs, and holiday clubs are covered by Tax-Free Childcare. School itself is not covered, but any registered wraparound childcare is. Your provider must be registered with Ofsted or the relevant body.
My child was born between 1 September 2002 and 2 January 2011 — what do I do about their Child Trust Fund?
Their Child Trust Fund (CTF) matures at 18. They should locate the account at gov.uk/child-trust-funds and can then transfer the funds to an adult ISA to keep the tax-free status. If the CTF is unclaimed, the money remains in the account until withdrawn — it does not disappear.
What is Child Benefit in 2026/27 and should I claim it even if I earn over £60,000?
Child Benefit is £27.05 per week for the first child and £17.90 per week for each additional child. You should always claim it, even above the High Income Child Benefit Charge (HICBC) threshold. Claiming — even if you pay it back via tax — protects your National Insurance credits toward State Pension.
What is the High Income Child Benefit Charge threshold in 2026/27?
The HICBC threshold was raised to £60,000 (from £50,000) in the Spring Budget 2024. If the higher earner in the household earns between £60,000 and £80,000, the charge is 1% of Child Benefit for every £200 above £60,000. Above £80,000, Child Benefit is fully clawed back.
Is there a school uniform tax break for parents?
Not specifically for parents buying school uniforms — there is no VAT relief on children's clothing (items for under 14s are zero-rated, but uniform is usually adult-sized for secondary school). However, some employers offer uniform purchase schemes as a tax-free benefit where the employer buys and provides uniform. Check with HR.
What if I have not claimed Child Benefit for a child born years ago?
You can backdate a Child Benefit claim by up to three months. For NI credit purposes (if you are not working), it is particularly important to have claimed. Contact HMRC Child Benefit office to start or backdate a claim.
Can a Child Trust Fund be transferred to a Junior ISA?
The CTF matures at 18 and becomes an adult ISA automatically (HMRC converted most to adult cash or stocks and shares ISAs). If the child is still under 18 and has a CTF, it can be transferred to a JISA — this process was enabled from April 2015.
What wraparound childcare support is available for school-age children?
School-age children up to 12 are covered by Tax-Free Childcare (£2,000/yr government top-up). The 30 free hours applies only to pre-school children. The government has been expanding breakfast clubs in schools — check if your school participates.
My child is starting Year 7 this September — do free childcare hours still apply?
No. Free childcare hours (15 or 30 hours) apply only to 2, 3 and 4 year olds in pre-school settings. Once a child starts primary school (Reception), the free hours scheme ends. After-school childcare costs are covered by Tax-Free Childcare if using a registered provider.
Try the calculators
Benefit Entitlement Checker (Universal Credit)
Estimate your monthly Universal Credit using 2025/26 standard allowances, child elements and the 55% taper.
Salary Sacrifice Calculator
Calculate how much tax and National Insurance you save by making salary sacrifice contributions to a pension, cycle to work scheme or EV car scheme.
ISA Calculator
Project ISA savings growth over time with the UK £20,000 annual allowance.
Related reading
Tax-Free Childcare 2026: How to Claim Up to £2,000 Per Child Per Year
Tax-Free Childcare gives you £2 for every £8 you spend on childcare — up to £2,000/yr per child (£4,000 for disabled). Who qualifies, how to apply in 20 minutes, and the £100k income trap that catches many families.
Universal Credit: How Much Will You Get in 2026?
How much Universal Credit could you get in 2026? We explain the standard allowance, the extra elements, the work allowance and how the 55% taper reduces your award as your earnings rise.
Child Benefit 2026/27: Rates, Who Gets It and the High Income Charge
Child Benefit pays £27.05/week for your first child and £17.90/week for each additional child in 2026/27. Full guide to rates, the High Income Child Benefit Charge, and how salary sacrifice can protect your entitlement.