You can set up an online childcare account to help with the costs of childcare. The government will pay £2 for every £8 you pay into this account. You can get up to £500 every 3 months (up to £2,000 a year), for each of your children. This increases to £1,000 every 3 months if a child is disabled (up to £4,000 a year).
You can get tax-free childcare at the same time as 15 or 30 hours free childcare if you are eligible for both.
What you can use tax-free childcare for:
You can use it to pay for approved childcare e.g. childminders, nurseries and nannies, after school clubs and play schemes. Your childcare provider must be signed up to the scheme before you can pay them and benefit from tax-free childcare. Please check with your provider to see if they are signed up.
Eligibility:
You can usually get tax-free childcare if you (and your partner, if you have one) are in work, on sick leave or annual leave or on shared parental, maternity, paternity or adoption leave and you are going back to work within 31 days of the date you first applied. You may still be eligible if your partner is working and you are in receipt of Incapacity Benefit, Severe Disablement Allowance, Carer’s Allowance or contribution-based Employment and Support Allowance.
Your child:
Your child must be 11 or under and usually live with you. They stop being eligible on 1 September after their 11th birthday. Adopted children are eligible, but foster children are not. If your child is disabled and usually lives with you, they stop being eligible on 1 September after their 16th birthday.
Criteria includes:
- Both parents/one if it is a one parent household, must be working and expect to earn the National Minimum Wage for 16 hours a week on average.
- Both/single parent must earn less than £100k per year each.
You cannot get tax-free childcare at the same time as claiming Universal Credit or childcare vouchers.
Find out more about tax-free childcare and apply online.
