Tax-Free Childcare is a new government scheme to help working parents with the cost of childcare. For every £8 a parent pays in, the government will pay in an extra £2. Parents can receive up to £2,000 per child, per year, towards their childcare costs, or £4,000 for disabled children. Parents will be able to open an online account, which they can use to pay for childcare from a registered provider. The scheme will be available for children up to the age of 12, or 17 for children with disabilities. To qualify, parents will have to be in work, and each expecting to earn at least £115 a week. Each parent must not have income over £100,000 per year.
Depending on the money you earn, you may be able to get tax credits to help pay for some of your childcare costs while you’re working. You can get up to £122.50 extra per week for 1 child, or £210 extra for 2 or more children. It won’t cover all of your childcare costs – use the tax credits childcare calculator to work out what childcare costs you can claim.