Tax-Free Childcare

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