Tax-Free Childcare: Save Up To £500 On Childcare Costs This Summer

With six weeks of summer holidays to fill, childcare costs can quickly add up. Whether you're paying for holiday clubs, after-school activities, childminders or nursery care, there may be help available through the Government's Tax-Free Childcare scheme. 

Eligible families can receive up to £2,000 per child each year (or £4,000 for a disabled child) through the Government's Tax-Free Childcare scheme. That's worth up to £500 every three months per child, helping to make the summer holidays a little more affordable. 

How does Tax-Free Childcare work? 

The scheme works a bit like a savings boost from the Government. Instead of paying your childcare provider directly, you pay into a dedicated Tax-Free Childcare account. 

For every £8 you pay into the account, the Government pays in an extra £2. 

You can then use the money to pay for approved childcare, including: 

• Nursery fees 

• Childminders 

• Before-school clubs 

• After-school clubs 

  
  

How can it help during the summer holidays? 

Many parents only think about childcare support during term time, but the scheme can also be used for approved holiday childcare. 

This could include: 

• Holiday clubs 

• Summer activity camps 

• Childminders 

• Breakfast and after-school clubs 

• Nurseries 

If your childcare provider is registered with the scheme, you can use your Tax-Free Childcare account to help cover the costs. 

For example: 

If you expect to spend £400 on summer holiday childcare, you will only need to contribute £320, with the Government paying in the remaining £80. 

Who is eligible? 

You may be eligible if: 

• Your child is aged 11 or under (or 16 or under if they have a disability). The scheme usually ends on 1 September after your child's 11th birthday (or 16th birthday if they have a disability). 

• You and your partner (if you have one) are working, whether employed or self-employed. You may also qualify if you're on maternity, paternity or adoption leave. 

• You and your partner (if you have one) each expect to earn at least the equivalent of 16 hours a week at the National Minimum or Living Wage, on average over the next three months. 

• Neither you nor your partner expects to earn more than £100,000 this tax year. 

You cannot receive Tax-Free Childcare at the same time as Universal Credit childcare support or childcare vouchers. If you're already receiving one of these, it's worth checking which option offers the greatest benefit for your family before applying.  

If you're unsure whether you qualify, it's worth checking your eligibility on the Government's website, as some exceptions apply. 

Could your family save money this summer? 

If you're planning to use holiday clubs, activity camps or other childcare during the summer break, Tax-Free Childcare could help reduce the cost. 

Eligible families can receive up to £500 every three months per child, depending on how much they pay into their Tax-Free Childcare account. 

You can check your eligibility and apply for Tax-Free Childcare through the Government's website. 

Please note: Eligibility criteria apply and individual circumstances may vary. Check the latest information on the Government's Tax-Free Childcare website before applying.