More than 14,700 families in Wales saved on childcare costs in September
More than 14,700 families in Wales benefitted from government funding towards childcare costs in
September 2022, HM Revenue and Customs (HMRC) has revealed.
Overall, HMRC paid out £44.4 million in Tax-Free Childcare top up payments to more than 401,300
families across the UK in September.
Compared to September 2021, the latest Tax-Free Childcare statistics show the number of families in
Wales who are using Tax-Free Childcare has increased by 3,710. But thousands of families are still
missing out on the top-up which could save them up to £2,000 a year per child towards the cost of
their childcare.
Tax-Free Childcare provides working families, earning up to £100,000 a year, with financial help
towards childcare. For every £8 paid into a Tax-Free Childcare online account, families will
automatically receive an additional £2 from the government. This means they can receive up to £500
every three months (£2,000 a year), or £1,000 (£4,000 a year) if their child is disabled.
The top up payments can be used to pay for any approved childcare for children aged 11 or under,
or up to 17 if the child has a disability whether your child goes to nursery, a child minder, has term-
time wraparound care or goes to a holiday club.
Families can check their eligibility and see the options for childcare support at Childcare Choices.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:
News Release
OFFICIAL
“We know childcare can be expensive so using Tax-Free Childcare can make a huge difference to
household finances. To find out more, search ‘Tax-Free Childcare’ on GOV.UK.”
Families could be eligible for Tax-Free Childcare if they:
have a child or children aged 11 or under. They stop being eligible on 1 September after
their 11 th birthday. If their child has a disability, they may get up to £4,000 a year until they
are 17
earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a
week, on average
each earn no more than £100,000 per annum
do not receive tax credits, Universal Credit or childcare vouchers
A full list of the eligibility criteria is available on GOV.UK.
Opening an online Tax-Free Childcare account is straightforward and can take around 20 minutes to
sign up. Accounts can be opened at any time, money can be deposited and used straight away or
when it’s needed. Unused money in the account can be withdrawn at any time. Go to GOV.UK to
register to get started.
The government has launched an awareness raising advertising campaign to ensure families get the
childcare support they are entitled to. Visit Childcare Choices to learn about the options and find out
the best childcare offer for families.
The government is offering help for households. Check GOV.UK to find out what cost of living
support, including help with childcare costs, families could be eligible for.
