Save up to £2,000 annually on childcare for your child starting school

• Working families with children starting school in September can reduce their childcare costs by up to £2,000 per child each year
• Tax-Free Childcare is a flexible way to pay for childminders, wraparound care, and holiday childcare
• This supports the Government’s goals to boost the economy and deliver on the Plan for Change

Thousands of families who recently secured a primary school place for their child this September can now benefit from Tax-Free Childcare to help cover the costs of before- and after-school care, as well as holiday clubs, according to HM Revenue and Customs (HMRC).

With many parents arranging childcare for school drop-off and pick-up, Tax-Free Childcare offers financial help worth up to £2,000 per year per child — or up to £4,000 for children with disabilities.

Families can check if they qualify and register for Tax-Free Childcare on GOV.UK.

Darren Jones, Chief Secretary to the Treasury, said:

“Our Plan for Change is putting more money in the pockets of working families, including up to £2,000 a year through Tax-Free Childcare. This support makes it easier for parents to return to work as we drive economic growth.”

Myrtle Lloyd, HMRC’s Director General for Customer Services, added:

“Starting school can bring lots of expenses and organisation. Now that parents know their child’s school, they can arrange childcare with the help of Tax-Free Childcare to manage costs more easily. Sign up today on GOV.UK to start saving.”

Tax-Free Childcare can be used for any approved childcare provider, giving parents the freedom to choose the care that suits their family, such as wraparound care, childminders, after-school clubs, or holiday care.

The scheme covers children up to age 11, or up to 16 if the child has a disability.

For every £8 a parent deposits into their Tax-Free Childcare account, the government adds £2 — providing up to £500 every three months, or £1,000 if the child is disabled, to help pay for childcare.

Once the account is set up, parents can deposit funds and use them immediately or save for later. Any unused money can be withdrawn at any time.

The Plan for Change aims to increase household incomes, and with Tax-Free Childcare, working families can save up to £2,000 annually per child, or £4,000 for children with disabilities.

Families may be eligible if they:

• Have a child aged 11 or under (eligibility ends on 1 September after their 11th birthday), or up to 16 for children with disabilities (up to 1 September after their 16th birthday)
• Both parents (if applicable) earn, or expect to earn, at least the National Minimum or Living Wage for 16 hours per week on average
• Each parent earns no more than £100,000 annually
• Do not receive Universal Credit or childcare vouchers

A complete list of eligibility criteria is available on GOV.UK.

Tax-Free Childcare can be used alongside free childcare hours, subject to eligibility.