More than 20,700 families in Wales received an average of £100 towards their monthly childcare bills
in June 2025· Working families encouraged to sign up to Tax-Free Childcare as Government top-ups totalled £57.7 million. Supporting the government’s mission to grow the economy and deliver on the Plan for Change
Working families are encouraged to sign up to Tax-Free Childcare ahead of the spooky school holidays to
avoid tricky childcare bills as latest figures from HM Revenue and Customs (HMRC) show 20,790 families in Wales got a savings treat in June.
Paying childcare bills through a Tax-Free Childcare account can save working families up to £2,000 per year for each of their children up to the age of 11 or £4,000 per year up to the age of 16 if the child is disabled.
HMRC is encouraging those yet to sign up for Tax-Free Childcare, to do it now to take advantage of savings on their half term childcare.
Myrtle Lloyd, HMRC’s Chief Customer Officer, said:
“Hallowe’en doesn’t need to be a tricky time for childcare bills. Whether you’re working and have a child in a
holiday club or taking time off and planning term-time care, paying your bills with Tax-Free Childcare can help. Go to GOV.UK to start saving today.”
Once a Tax-Free Childcare account is open, for every £8 parents deposit in their child’s account, the
government tops it up by £2. Parents can receive up to £500 (or £1,000 if their child is disabled) every 3
months towards their childcare costs.
In June, the government paid a total of £57.7 million in top-ups to Tax-Free Childcare accounts which means each family received, on average, more than £100 to be used towards their childcare bills.
For the attention of Newsdesks & personal finance correspondents No. of pages: 2
Date: 9 October 2025 Ref: WAL 38 25
Parents can use Tax-Free Childcare to help pay toward any approved childcare for their child – so that’s
nursery for younger children or, for older children who are in school, wraparound childcare, after-school and holiday clubs.
Once families have opened a Tax-Free Childcare account, they can deposit money and use it straight away or keep it in the account to use it whenever it’s needed. Any unused money in the account can be withdrawn at any time.
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 Universal Credit or childcare vouchers
Visit GOV.UK to check eligibility and register for Tax-Free Childcare.
Tax-Free Childcare can be used alongside the free childcare hours, subject to eligibility.
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