Will the Welsh Government confirm that self-employed individuals are eligible for 30-hour childcare funding, even when end of year accounts do not show a profit?

Answered by Deputy Minister for Social Services | Answered on 26/01/2022

The Childcare Offer provides 30 hours a week of government-funded early education and childcare for eligible working parents of 3 and 4 year olds for up to 48 weeks a year.  During term time (39 weeks of the year) the Offer builds on the existing universal commitment to early education which provides all 3 and 4 year olds with a minimum of 10 hours per week of provision. For the remaining 9 weeks the Offer funds 30 hours of childcare per week.

A self-employed individual’s eligibility for the Offer is not assessed against any profit or loss. Instead the individual must be able to evidence that they earn at least, on average, the equivalent of 16 hours at the rate of minimum wage (National Minimum Wage, National Living Wage or Apprenticeship Minimum Wage) applicable to the person per week.

Typically as evidence an established self-employed parent would supply their Unique Tax Reference and details of their earnings over the past 12 months, as set out in their Self-Assessment return.

In the absence of a Self-Assessment return, confirmation from the individual’s accountant of their likely income over the forthcoming tax year can be provided as evidence. Alternatively, where earnings do not meet the threshold, a statement of the anticipated income over the period of entitlement could also be provided.