UK Govt announced £2,000 Financial Boost for Childcare: If your child is starting school in September and you’re a working parent, you could save big on childcare. The UK Government’s Tax-Free Childcare scheme helps families pay for things like childminders, after-school care, and holiday clubs. This support can make a real difference, especially with school expenses coming up.
What Is Tax-Free Childcare?
Tax-Free Childcare is a government-backed scheme that gives parents extra money to help with childcare costs. For every £8 you put into your childcare account, the government adds another £2. This means you can get up to £500 every three months (or £1,000 if your child is disabled). That adds up to £2,000 or £4,000 a year per child.
Who Can Use It?
Tax-Free Childcare is available to working families across the UK. You can use it if:
- Your child is aged 11 or under (or up to 16 if they have a disability)
- You and your partner each earn at least the National Minimum or Living Wage for 16 hours a week
- You each earn less than £100,000 a year
- You’re not getting Universal Credit or childcare vouchers
You can check full details and register at GOV.UK.
What Can You Use It For?
You can use this scheme to pay for:
- Childminders
- Wraparound childcare (before and after school)
- Holiday clubs
- After-school care
- Any approved childcare provider registered with the scheme
This means you can plan care in a way that suits your work schedule.
How Does the Money Work?
Once your account is set up, you can add money anytime. The government top-up is added automatically. You can:
- Use the money right away
- Save it to use later
- Withdraw any unused money if needed
Each child needs their own account. The government top-up is added to each account, not just one for the whole family.
Keep Your Account Active
To keep receiving the government’s help, you must confirm your details every 3 months. This helps make sure you’re still eligible and can continue getting support.
Can You Combine Tax-Free Childcare with Free Hours?
Yes! If you qualify, you can use Tax-Free Childcare together with free childcare hours. This can make a big difference in reducing your overall costs.
Starting school is a big step, and it can be costly for working families. But with Tax-Free Childcare, you can get up to £2,000 a year per child to help with those childcare expenses. Whether it’s wraparound care, a childminder, or a holiday club, this support helps you plan better and save money. So if your child is starting school this September, now’s the time to register and start saving. Visit GOV.UK to check if you’re eligible and set up your account today.
FAQ
Who can apply for Tax-Free Childcare?
Working families with children under 12 (or under 17 if disabled), who each earn under £100,000 and meet minimum income requirements, can apply.
How much can I save with Tax-Free Childcare?
You can save up to £2,000 a year per child, or up to £4,000 if your child has a disability.
What types of childcare can I use this for?
You can use it for childminders, wraparound care, holiday clubs, and any registered childcare provider.
Can I use Tax-Free Childcare with free hours?
Yes, if you’re eligible, you can use both benefits together to save more.
How do I apply for Tax-Free Childcare?
Go to GOV.UK and register online. You’ll need to set up a separate account for each child.
