05/08/2026
Cut Childcare Costs This Playday With Tax-Free Childcare
Working families are being encouraged to see if they can cut the cost of childcare this Playday (5 August), after new HM Revenue and Customs (HMRC) data showed those using Tax-Free Childcare saved an average of almost £100 a month.
Tax-Free Childcare offers up to £2,000 a year per child – or £4,000 for a disabled child – to help cover approved childcare, supporting parents to balance work and family life. Eligibility checks and applications can be completed on GOV.UK.
For every £8 paid into a Tax-Free Childcare account, the government adds £2. Parents can open an account for each child up to age 11, and up to age 16 if the child is disabled.
The scheme can be used to pay for approved providers including nurseries, childminders, holiday clubs, breakfast clubs and after-school clubs. Almost 75,000 providers are now registered to accept payments.
While most users have younger children, the number of families using the scheme for childcare for children aged 8 and above rose by more than 20% compared with the previous year, according to the latest statistics.
Myrtle Lloyd, HMRC's Chief Customer Officer, said: "Tax-Free Childcare can help with your summer childcare plans and, looking to the term ahead, with whatever type of care you require for your child. If you haven't signed up already, do it today so you don't miss out. Go to GOV.UK and search 'Tax-Free Childcare'."
Families can receive up to £500 in top-up funds every three months, or £1,000 for a disabled child. Money can be deposited and used straight away or saved for later, and any unused funds can be withdrawn at any time.
You could be eligible if you have a child aged 11 or under (eligibility ends on 1 September after their 11th birthday, or after their 16th birthday if they have a disability), you and your partner (if you have one) each earn at least the National Minimum Wage or Living Wage for an average of 16 hours a week, each earn no more than £100,000 per annum, and you do not receive Universal Credit or childcare vouchers.
Tax-Free Childcare can be used alongside government-funded childcare hours, subject to eligibility. The latest statistics (to March 2026) and further guidance, including how the scheme works with other childcare offers, are available on GOV.UK and the Best Start in Life parent hub.
Tax-Free Childcare offers up to £2,000 a year per child – or £4,000 for a disabled child – to help cover approved childcare, supporting parents to balance work and family life. Eligibility checks and applications can be completed on GOV.UK.
For every £8 paid into a Tax-Free Childcare account, the government adds £2. Parents can open an account for each child up to age 11, and up to age 16 if the child is disabled.
The scheme can be used to pay for approved providers including nurseries, childminders, holiday clubs, breakfast clubs and after-school clubs. Almost 75,000 providers are now registered to accept payments.
While most users have younger children, the number of families using the scheme for childcare for children aged 8 and above rose by more than 20% compared with the previous year, according to the latest statistics.
Families can receive up to £500 in top-up funds every three months, or £1,000 for a disabled child. Money can be deposited and used straight away or saved for later, and any unused funds can be withdrawn at any time.
You could be eligible if you have a child aged 11 or under (eligibility ends on 1 September after their 11th birthday, or after their 16th birthday if they have a disability), you and your partner (if you have one) each earn at least the National Minimum Wage or Living Wage for an average of 16 hours a week, each earn no more than £100,000 per annum, and you do not receive Universal Credit or childcare vouchers.
Tax-Free Childcare can be used alongside government-funded childcare hours, subject to eligibility. The latest statistics (to March 2026) and further guidance, including how the scheme works with other childcare offers, are available on GOV.UK and the Best Start in Life parent hub.
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