Tax-Free Childcare is a new UK-wide government scheme to help working parents with the cost of childcare.
- It will be rolled out to parents from early 2017.
- Eligible parents will be able to register and open an online childcare account.
- The money held in these accounts can only be used by parents to pay for registered childcare.
- For every £8 parents pay in to their childcare account, the government will pay in an additional £2, up to a maximum of £2,000 per child per year (or £4000 for disabled children).
- Parents will then be able to use the funds to pay for breakfast and afterschool provision provided by schools which is optional ‘non-educational childcare’ provision that parents purchase
Eligibility – this is not a universal benefit
Both parents are working and/or:
One parent working in lone parent family (earning equivalent of 16 hours a week on National Minimum Wage including those receiving tax credits or Universal Credit)
One/both parent/s is away from work on leave (parental, maternal etc.)
One/both parent/s receiving Statutory Sick Pay
Includes zero-hours contracts and self-employed
One parent is employed and the other parent has either: substantial caring responsibilities/ and or disability; is a foster carer with their own Three- and Four-year-old children
Income cap of £100k per parent
Parents who are in training will not be eligible
Parents can call The Customer Interaction Centre Tel 0300 123 4097 and need to sign up – https://childcare-support.tax.service.gov.uk/ccp/signup/startpage