Tax-Free Childcare — Government Pays 20% (up to £2,000/Child a Year)

Overview

Tax-Free Childcare is for working parents — the government pays 20% of your childcare costs. For every £8 you pay into an online childcare account, the government adds £2, up to £500 every 3 months (£2,000 a year) per child, or £4,000 a year if your child is disabled. It covers registered nurseries, childminders, after-school clubs and holiday camps.

How to Claim

1. Click the link on this page to open the official GOV.UK Tax-Free Childcare page and apply (you'll need your details and your child's).
2. Once approved, open your online childcare account.
3. Pay money in — the government automatically adds 20%.
4. Pay your registered childcare provider straight from the account.

Requirements

• You (and your partner, if you have one) are in work, each earning at least about £8,670 a year — with some exceptions if one of you gets certain benefits.
• Neither of you earns £100,000 or more.
• Your child is 11 or under (or 17 if disabled).
• Your childcare provider is signed up to the scheme.

Important Terms

• Maximum top-up £500 per quarter (£2,000/year) per child; £1,000 per quarter (£4,000/year) if disabled.
• You can't use it at the same time as Universal Credit or Tax Credits — check which is better for you.
• You reconfirm your details every 3 months.

Tips

• Most nurseries, childminders and many holiday/after-school clubs accept it — check yours is signed up.
• If you also qualify for free childcare hours, you can use both together.
• Apply directly on GOV.UK — it's free.