Help with Childcare Costs

The government’s Tax-Free Childcare scheme enables eligible working families to save 20% of their childcare costs. It is available for working parents with children under 12 (or under 17 for children with a disability). For every £8 you or someone else pays in to the account the government will add another £2 up to a maximum of £2,000 per child per year (or £4,000 for children with a disability). This means that families will receive an extra £20 for every £80 they save towards childcare costs, totalling £100.

The scheme is available for working families where:

• both parents are in work or it is a single parent household
• each parent earns at least the National Minimum Wage or Living Wage for 16 hours a week and no more than £100,000 a year
• parents aren’t already receiving support through Working Tax Credit, Child Tax Credit, Universal Credit or childcare vouchers.

It can also be used by parents who are:

• self-employed (newly self-employed parents will not have to earn the minimum income levels during their ‘start-up’ period)
• on paid sick leave
• on paid or unpaid statutory maternity, paternity or adoption leave

If you’re not working, you may still be eligible if your partner is working, and you get Incapacity Benefit, Severe Disablement Allowance, Carer’s Allowance or Employment and Support Allowance.

How can I register for the scheme?

You can apply for the scheme through the government’s Childcare Choices website. You, and your partner, if you have one, will need your:

• National insurance number (s).
• Details of one or more of the following – your UK Passport, tax credits, P60 or a recent payslip.
• In some cases, additional checks may be needed to confirm whether you’re eligible. If you are found ineligible you will be told why.

Once you have opened your account it can be used to pay in money to use towards your childcare costs with a childcare provider who has also registered for the scheme. Grandparents, other family members and employers will also be able to pay into the account if they choose. You can find additional information about Tax-Free Childcare on the gov.uk website.