Tax Free childcare – information for parents

Tax Free Childcare is paid to help parents in work with the cost of childcare. The government will add £2 for every £8 they pay for childcare, up to a maximum of £2000 per child per year (or £4000 per year if their child is disabled). It can only be used for Registered childcare. This means a registered childminder, play scheme, nursery, or club, a registered school, or a home care worker working for a registered agency.

Parents can apply for Tax Free Childcare if:

• Their childcare provider is registered with the Scheme

• Their child is aged under 12, or under 17 if they have a disability

• They are a single parent earning the equivalent of at least 16 hours per week at the minimum wage (if under 25) or the Living Wage (if over 25)

• They are part of a couple and they are both earning this amount, or one of them is earning and the other is unable to work due to illness, disability, or caring responsibilities

• They (and their partner if they have one) are earning less than £100,000 per year

After being gradually introduced, as of 14 February 2018 Tax Free Childcare is now available for all families with children under 12 years old. They can apply now for Tax Free Childcare here.

Parents can’t receive Tax Free Childcare and Universal Credit or Working Tax Credit at the same time. They can use the government’s Childcare Calculator to find out which option is better for them: this will depend on their family circumstances.