HMRC is encouraging working parents to open a Tax-Free Childcare account to save on their
childcare costs ahead of the Easter holidays.
Tax-Free Childcare is a UK Government funded top-up scheme for working parents and can be used
to pay for approved childcare for children aged 11 or under, or up to 16 years old if the child has
a disability. Parents can save up to £2,000 per year per child or £4,000 if their child is
disabled. The funds can be used to pay for a before- or after-school clubs, a childminder or
an activity club during the holidays.
For every £8 deposited in a Tax-Free Childcare account, the government tops it by £2 which
means parents can receive up to £500 (or £1,000 if their child is disabled) every 3 months to
help pay their childcare costs.
Latest figures show 19,970 families in Wales saved thousands on their childcare in
December 2024, an increase of more than 3,100 compared to the previous year.
In December, parents across the UK received a total of £49.7 million in government cash to
save on their childcare bills.
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 receive up to
£4,000 a year until 1 September after their 16 th birthday
the parent and their partner (if they have one) 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
Families can check their eligibility and apply on GOV.UK.
Tax-Free Childcare can be used with the free hours offer (15 or 30 hours) as long as
eligibility is met.
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