Student Parents: Childcare Grant and Parents’ Learning Allowance Explained (England)

Studying with a young child is expensive, and student finance in England includes two grants aimed at parents: the Childcare Grant, which contributes to registered childcare, and the Parents’ Learning Allowance, which is a flat-rate payment. Neither has to be repaid, and both are paid on top of other student finance. This guide explains how they work, using GOV.UK and the Student Loans Company’s practitioner pages, for students who live in England. Scotland, Wales and Northern Ireland have separate student finance systems, and GOV.UK points students there to different processes. It is general information, and the figures should be checked for the academic year that applies.

Childcare Grant: what you can get

GOV.UK says the grant covers 85% of childcare costs or a fixed maximum, whichever is less. The maximum is £199.62 a week for one child and £342.24 a week for two or more children, and the Student Loans Company lists those same maximums for both the 2025 to 2026 and 2026 to 2027 academic years. GOV.UK gives two examples: childcare of £100 a week for one child gets £85 a week, while childcare of £250 a week gets the £199.62 maximum, leaving £50.38 to pay. The amount also depends on household income and the number of dependent children.

Childcare Grant: who qualifies

To qualify, GOV.UK says all of the following must apply:

• you are a full-time student, studying 120 credits or more in a year on a single course;
• your child is under 15, or under 17 if they have special educational needs;
• you get, or are eligible for, student finance based on household income, and are not getting a Postgraduate Loan;
• you are a permanent resident in England;
• household income is less than £20,107.23 for one child, or less than £28,914.47 for two or more children;
• neither you nor your partner is claiming Tax-Free Childcare or the childcare element of Universal Credit or Working Tax Credit, or receives help with childcare costs from the NHS; and
• the provider is on the Ofsted Early Years Register or General Childcare Register.

GOV.UK adds that a Childcare Grant is different to the 15 or 30 hours of free childcare and cannot be used to pay for those hours. The site’s guide to Tax-Free Childcare explains the scheme that cannot be claimed alongside the grant.

The nanny rule from 1 August 2026

From 1 August 2026, according to GOV.UK, a Childcare Grant cannot be paid if the childcare is provided by a nanny, meaning someone employed to look after the child in the student’s home. The page says an alternative such as a registered childminder or a nursery is needed, for both new and returning students. Anyone choosing between options can use the guide to choosing childcare for a baby.

How the grant is paid

The grant goes into an online Childcare Grant Payment Service account. The provider sends payment requests, which the student approves, usually every week, and the provider is paid from the account. GOV.UK says payments can only be approved once the course has started, and the grant cannot be used for upfront costs such as deposits. Money left at the end of the academic year is returned to Student Finance England. The Student Loans Company adds that students do not need to know their provider before applying, but must have confirmed arrangements and linked the provider online before any payment is made. GOV.UK says income-related, unemployment and housing benefits are not affected by a Childcare Grant.

Parents’ Learning Allowance

The Parents’ Learning Allowance is separate. GOV.UK says a student in England with dependent children can get it if household income is less than £18,957.99 a year and they are on a full-time undergraduate course or a course worth at least 120 credits for the year. The page says depending on household income, the amount is between £50 and £2,024 for each year of the course, paid in up to three instalments, and the Student Loans Company lists £2,024 as the maximum for 2025 to 2026 and 2026 to 2027. It does not need to be paid back, does not affect benefits or tax credit, and, unlike the Childcare Grant, a student does not need to be paying for childcare to be eligible. It cannot be paid to someone getting a Postgraduate Loan.

Planning the household budget

• Work out childcare costs per week and compare them with the 85% rule and the weekly maximum.
• Check whether a partner’s Universal Credit or Tax-Free Childcare claim would rule out the grant.
• Apply for the grants as part of the student finance application, and update details if circumstances change.
• Look at other family support in the guides to Universal Credit and a new baby and Child Benefit.

Frequently asked questions

Do I have to repay the Childcare Grant? No. GOV.UK says it does not have to be paid back, although overpayments caused by a change in circumstances or course may have to be repaid.

Can I use it for a nanny? Not from 1 August 2026, according to GOV.UK.

Do I need childcare to get the Parents’ Learning Allowance? No. GOV.UK says students do not need to be paying for childcare to be eligible.

The bottom line

Student parents in England may be able to combine the Childcare Grant, worth up to 85% of registered childcare costs to a weekly maximum, with the Parents’ Learning Allowance of up to £2,024 a year. Both are non-repayable, the income tests differ, and nannies no longer qualify for the Childcare Grant from 1 August 2026.

Sources

• GOV.UK, "Childcare Grant: What you’ll get"
• GOV.UK, "Childcare Grant: Eligibility"
• GOV.UK, "Parents’ Learning Allowance: Eligibility"
• GOV.UK, "Parents’ Learning Allowance: What you’ll get"
• Student Loans Company, "Full-time Childcare Grant: What’s available"
• Student Loans Company, "Full-time Parents’ Learning Allowance: What’s available"