The PSACO Allowance, will be available to eligible Service families in overseas locations where the Defence Wraparound Childcare (WAC) Allowance eligibility criteria cannot be met.
What is the PSACO Allowance?
The PSACO Allowance is the final phase of the WAC scheme. Providing a reimbursement of before and after school childcare costs for 4–11-year-old children (4-16 years old if in receipt of certain UK disability benefits), in overseas locations where due to local rules or regulations the WAC Allowance eligibility criteria cannot be met or because Tax-Free Childcare (TFC) accounts are not available.
Service personnel that meet the eligibility criteria could claim around £3,400 per child, per year, for before and after school childcare costs.
Please note that the availability of before and after school childcare spaces in DCS schools and settings may vary by location. The PSACO Allowance does not provide childcare spaces, it is a reimbursement of costs incurred when eligible families pay for before and after school childcare. Families are encouraged to check the availability of suitable childcare options in their area before making any arrangements. If there are no before and after school childcare spaces available in a DCS school or setting, the PSACO Allowance can be claimed for the costs of before and after school childcare when using host nation childcare providers that are registered, regulated and inspected by host nation authorities
For detailed policy information including the eligibility criteria search ‘PSACO Allowance’ at DINs Search (defnet) or Group: Defence Instruction Notices – DIN’s | Defence Connect.
Which locations will the PSACO Allowance be available in?
The PSACO Allowance will be available to eligible Service families in all overseas locations. In some locations both the WAC and PSACO Allowances will be available due to the different eligibility criteria. If Service personnel are eligible for WAC, they are not eligible for PSACO. Please note that there will be some families that don’t meet the eligibility criteria for either scheme.
What can Service personnel claim the PSACO Allowance for?
Service personnel that register for the PSACO Allowance will be able to claim for up to 20 hours of before and after school childcare per week, per child, for up to 39 weeks per year (52 week rolling period, term time only). Capped hourly rates apply and these can be found in the PSACO Allowance DIN.
Childcare providers used must be registered, regulated and inspected by host nation authorities for Service personnel to claim the PSACO Allowance.
Where spaces are available, Defence Children Services (DCS) schools and settings that provide before and after school childcare can also be used when claiming the PSACO Allowance.
How can Service personnel register for and claim the PSACO Allowance?
Registration and claims information will be available from January 2026.
In the meantime, to prepare to register for the PSACO Allowance, please check the eligibility criteria and ensure that your children are recorded and verified on JPA, your Unit HR can assist you with this.
Where to find further information
The eligibility criteria, further guidance and resources are available on the Defence Childcare Information page defnet or Defence Connect. Registration and claims guidance will be available on this page from January 2026.
PSACO information will be added to the Discover My Benefits website from January 2026.
Any questions?
Personnel and Service families can email the policy team at: [email protected]
Defence has launched a new Families Hub to help Service personnel and their families navigate Service life. To find out more, visit the Families Hub.
