Home » Over £100k? How to Still Maximise Childcare Support

Earn over £100k? How to Still Maximise Childcare Support and Other Benefits in 2026

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Tom Townson

Dad of two and Founder of Family Money Expert

Last updated: 23/04/2026

If the highest earner in your household is over £100,000, you risk losing thousands in government childcare help. But many families in this position can stay be eligible for the 30-hour funded childcare and Tax-Free Childcare top-up

Cut to the chase, Tommy, I'm busy!"

60 seconds on: Earning over £100k and Worried About Losing Childcare Support?

Here’s the quick lowdown if you’re in a rush – or scroll down for the full guide:

1. If either parent’s adjusted net income (ANI) goes over £100,000 in the current tax year, your household usually loses both 30-hour funded childcare (worth up to ~£7,500 per child) and Tax-Free Childcare (£2,000 top-up per child, or £4,000 if disabled).

2. You can often stay eligible with straightforward moves like extra pension contributions or Gift Aid – our free calculators show you exactly how much you need.

3. Workplace nursery salary sacrifice schemes can save even more (up to 40-50% on fees) with no £100k limit.

4. You can still claim Child Benefit (for valuable National Insurance credits towards your State Pension) and the automatic 15 universal hours at age 3.

5. Next step: Plug your payslip into our Adjusted Net Income Calculator – it takes under 2 minutes.

The £100k Childcare Cliff-Edge

Many high-earning parents assume that once the top earner hits six figures, all government childcare support disappears. That’s partly true – but not quite as black-and-white as it seems.

The two main schemes affected are:

30-hour funded childcare – available for children from 9 months to school age in England (term-time only, 38 weeks a year, unless your provider stretches the hours).
Tax-Free Childcare – the government tops up every £8 you pay with £2, up to £2,000 a year per child (£4,000 if disabled). It works alongside the 30 hours for maximum saving.

Eligibility rule: Both parents (if you have a partner) must each have an adjusted net income (ANI) under £100,000 in the current tax year. It’s assessed individually, not on household income. Foreign income counts too.

You also need to be working and expect to earn at least the equivalent of 16 hours a week at National Minimum/Living Wage.

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How to Bring Your Adjusted Net Income Below £100k

Adjusted net income is basically your taxable pay minus certain deductions. It includes salary, bonuses, commission, RSUs when vested, rental income and taxable savings interest. You subtract gross pension contributions and Gift Aid.

Try our free tools now:

Adjusted Net Income Calculator

Input your gross pay (before tax/NI, after salary sacrifice), employer and personal pension contributions, bonus, and Gift Aid. It instantly shows your estimated ANI and exactly how much extra you’d need to add to your pension or Gift Aid to stay under £100,000 and keep both schemes.

£100k Childcare Break-Even Calculator

A ready reckoner that models your salary, bonus and pension to show the trade-offs – how much pension boost, Gift Aid or hours reduction would keep you eligible versus the childcare saving.

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Tommy’s Tip

A careful review of additional pension contributions, reducing the amount you work and charity contributions can leave families thousands better off. It's well worth the time invested to get make sure the situation works for you.

Workplace Nursery Schemes – Often the Best Option for High Earners

Some employers offer (or can set up) a workplace nursery scheme via salary sacrifice. You pay nursery fees from your gross salary before tax and National Insurance – potentially saving 32-47% depending on your tax band.

These schemes have no £100k income limit and can work alongside the 30-hour funded hours (but not Tax-Free Childcare). They’re especially powerful if your monthly childcare bill is high.

While you’re speaking to HR, also ask about other salary sacrifice options (cycle-to-work, electric car) that can help reduce your ANI.

Important

HMRC requires genuine employer involvement (financial and management responsibility) for full tax exemption. Ask your HR team for details and check the structure carefully.

While you’re speaking to HR, also ask about other salary sacrifice options (cycle-to-work, electric car) that can help reduce your ANI.

What You Can STILL Claim – Don’t Miss These

Even if you go over the £100k ANI limit for the main childcare schemes, other support remains available:

Child Benefit – Claim it anyway. You get valuable National Insurance credits that protect your State Pension, even if you pay the High Income Child Benefit Charge (tapers from £60,000 and fully claws back by £80,000 in 2026/27).
15 universal hours at age 3 – Automatic for all families, no income test or code needed if you already have one for a younger child.
Grandparent NI credits – If grandparents (under State Pension age) help with paid childcare, a simple contract can give them NI credits too.

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Important

Scotland and Wales note: Rules differ. Scotland offers 30 hours from age 3 (not means-tested in the same way). Wales has a means-tested offer at three to four with a £100k gross income test. Check your nation’s scheme directly.

Quick Wins Most High Earners Miss

Maternity leave timing — You stay eligible on existing schemes even if pay drops. Return-to-work date must align with term starts (use annual leave if needed; KIT days don’t count).
Self-employed proof — HMRC usually starts with recent payslips or bank statements/invoices.
Reconfirmation — Every three months on your HMRC childcare account – do it in good faith. If a late bonus tips you over, contact HMRC promptly.
Redundancy — Grace periods vary by local authority if you’re already claiming.

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Action Checklist – What to Do Today

Grab your latest payslip and run it through the Adjusted Net Income Calculator.
Use the £100k Childcare Break-Even Calculator to compare options.
Speak to your payroll/HR about increasing pension contributions or setting up a workplace nursery scheme.
Set a calendar reminder to reconfirm eligibility every three months.
Claim (or keep claiming) Child Benefit for the NI credits – even if you pay the charge back.
Check with your nursery about stretching hours and consumables fees.

Childcare costs feel never-ending, but they are temporary. Getting this right now can free up serious cash for the years ahead – whether that’s building your pension, saving for your child’s future in a Junior ISA, or simply reducing the monthly pressure.

For the full picture of every universal family benefit (including the 15 universal hours at age 3), see our main guide to benefits for UK parents.

Tommy’s Tip

The admin takes minutes every three months. The potential savings run to tens of thousands over a few years. Run the numbers, make the small changes that suit your family, and you’ll be in a stronger position when the bills finally drop.

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