As a working parent or carer, you could receive up to £500 every three months (up to £2,000 a year per child) to help cover your childcare expenses.
If your child has a disability, the support could increase to £1,000 every three months (up to £4,000 a year per child).
This funding can be used for a wide range of childcare services, including childminders, nurseries, nannies, playschemes, before and after school clubs, and holiday clubs. Make sure to check with your provider to confirm they are registered with the Tax-Free Childcare scheme.
Some extra good news - our Council-run Kids' Clubs and early learning and childcare settings are registered with the scheme. If you receive Universal Credit, up to 85% of your childcare sessions could be covered. For instance, an after-school session that normally costs £10.20 could be reduced to just £1.53 per session. If you earn less than £100k per year, you could save up to 20% an after-school session, reducing the cost to £8.16 instead of £10.20.
How it works
You set up an online childcare account for your child. For every £8 you pay into this account, the government will pay in £2, up to a maximum of £2,000 a year or £4,000 if your child has a disability. You can then use the money to pay your childcare provider.
You need to reconfirm your eligibility for Tax-Free Childcare every three months. You'll get a text reminder and it's easy to do through your online childcare account.
Am I eligible?
To qualify for Tax-Free Childcare, you, and your partner if you are married or in a relationship, need to be working at least 16 hours a week and expect to earn at least the National Minimum Wage or National Living Wage over the next 3 months. This includes being:
- self-employed
- on shared parental, maternity, paternity, or adoption leave
- on sick leave or annual leave
Your child is eligible until 1 September after their 11th birthday, or until 1 September after their 16th birthday if they have a disability. Each parent or carer can earn up to £100,000 per year and still qualify. Your eligibility isn't affected by the amount of tax you pay and it doesn't impact your income tax or VAT.
To find out how much you could get towards your childcare costs and check whether you're eligible, visit the Child Care Choices website or www.gov.uk/tax-free-childcare.
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