Tax-Free Childcare provides thousands of eligible working families with up to £500 every three months (or £1,000 if their child is disabled) towards the cost of holiday clubs, before and after-school clubs, childminders and nurseries, and other approved childcare schemes.
For every £8 deposited into a Tax-Free Childcare online account, families will receive an additional £2 in Government top-up, and it is available for children aged up to 11, or 17 if the child has a disability.
More than 28,945 working families in Yorkshire and the Humber used the scheme in December 2021. Overall, HMRC paid out more than £34million in top-up payments, which was shared between nearly 328,000 families across the UK.
With recent research estimating that around 1.3 million families could be taking up this Government support, parents and carers can check their eligibility and register for Tax-Free Childcare via gov.uk
This scheme can help working families including the self-employed and is one of many ways the Government is supporting households to reduce their costs and keep more of what they earn to help pay for other bills.
Helen Whately, HM Treasury’s Exchequer Secretary to the Treasury, said: “There are lots of brilliant holiday clubs and childcare providers to help working parents during the Easter holidays, and Tax-Free Childcare is a great offer that can help cut the childcare bills.
“I urge families across the UK to take advantage of this support and put extra pounds in their pocket - sign up now and save on your childcare costs.”
By depositing money into their accounts, families can benefit from the 20 per cent top-up and use the money to pay for childcare costs when they need it. Accounts can be opened at any time of the year and can be used straight away.
For example, if parents and carers have school-aged children and use holiday clubs during school holidays, they could deposit money into their accounts throughout the year.
This means they could spread the cost of childcare while also benefitting from the 20 per cent Government top-up. Any unused money that is deposited can be simply withdrawn at any time.
Tax-Free Childcare is also available for pre-school aged children attending nurseries, childminders or other childcare providers.
Families with younger children will often have higher childcare costs than families with older children, so the tax-free savings can really make a difference.
Childcare providers can also sign up for a childcare provider account via gov.uk to receive payments from parents and carers via the scheme.