£100k income and loss of childcare benefits
Certain childcare-related entitlements are subject to income thresholds.
When income exceeds £100,000, eligibility can change in ways that materially affect household finances.
Childcare entitlements affected
Depending on circumstances, this may include:
eligibility for 30 hours of funded childcare
access to Tax-Free Childcare
These entitlements are assessed using income definitions that differ from take-home pay.
Why the impact is often unexpected
The loss of childcare support does not occur gradually.
Eligibility can change abruptly once income crosses the relevant threshold, which can result in a significant change in net household position.
Interaction with other thresholds
Where childcare entitlements are withdrawn at the same time as other allowances are reduced, the combined effect can be difficult to assess without looking at the full picture.
Further analysis
A personalised analysis can show how childcare entitlements interact with other income-related thresholds in your circumstances.
View the £100k Cliff Edge Report
Related explanations