Tax-Free Childcare is a government scheme that helps working parents with childcare costs. For every £8 you pay into a childcare account, the government adds £2.
How It Works
You set up an online childcare account and pay in your own money. Your employer can also contribute through salary sacrifice. The government adds 25% to your contributions, up to certain limits.
- Government adds £2 for every £8
- Maximum government contribution: £500 per quarter
- You can contribute from your own funds or salary sacrifice
Eligibility Criteria
To qualify, you (and your partner if you have one) must be in paid work earning at least the National Minimum Wage for 16 hours per week. You must not exceed income thresholds and your child must be under 11.
How much can I get?
The maximum government contribution is £500 per child per quarter (£2,000 per year). This applies even if your actual childcare costs are higher.
Can I use it with other schemes?
No. You can only use Tax-Free Childcare OR the childcare element of Universal Credit, not both. Compare which works better for your situation.
- tax-free childcare
- childcare
- government scheme
- working parents
- UK