Save up to £2,000 a year on your childcare

Are you a parent? Did you know that you might be able to save up to £2,000 a year on childcare if your child is under 12 (or under 17 if disabled)?¹

The Government’s Tax-Free Childcare scheme offers families support towards childcare costs of up to £2,000 per child (up to £4,000 if your child is disabled). The scheme adds 20p for every 80p you put in, effectively giving you back the 20% basic-rate tax on what you pay.

You can use the scheme to pay for childcare including nurseries, childminders, playgroups and after-school clubs. And you don’t need to use the money straight away either. You can build up credit to use when you need it most, like during school holidays.

To qualify, you, and your partner if you have one, must both be working, earning a minimum of £125.28 per week if you’re over 25 (the equivalent of 16 hours per week at the national living or minimum wage currently), and each earning less than £100,000 a year.

To find out more, take a look at the Childcare and parenting section of the Government’s website.

The Tax-Free Childcare scheme replaces the Childcare Vouchers system that closes to new applications on Thursday, 4 October 2018. For more information about childcare options visit https://www.gov.uk/browse/childcare-parenting/childcare.

¹www.moneyadviceservice.org.uk/en/articles/help-with-childcare-costs