Working families encouraged to cut the cost of Easter childcare by signing up to Tax-Free
Childcare
Latest figures show 20,515 families in Wales saved on their childcare bills in December 2025
More than £46 million in government cash helped with childcare costs for almost 660,000
children
More than 20,500 families in Wales saved money on their childcare in December as HM Revenue
and Customs (HMRC) urges families to sign up before booking their Easter holiday childcare.
Working families who sign up to Tax-Free Childcare can make yearly savings of £2,000 off their
childcare costs for each of their children up to the age of 11 and £4,000 for disabled children up to
the age of 16.
Visit GOV.UK to check eligibility and register for Tax-Free Childcare.
Myrtle Lloyd, HMRC’s Chief Customer Officer, said:
“£2,000 a year off childcare bills can make a big difference to household expenses. There are plenty
of childcare providers to choose from to suit your needs and your children’s interests – sign up today
to make those savings for the Easter school holidays and for your plans for the rest of the year. Go
to GOV.UK to find out more.”
Once a Tax-Free Childcare account has been opened for each child, for every £8 deposited, the
government tops it up by £2. A total of £46.6 million in government cash was added to accounts in
December, the latest figures show, contributing to the cost of childcare for almost 660,000 children.
A family can save up to £500 every three months for each child (£1,000 every three months if the
child is disabled) which can be used to pay for any approved childcare.
Parents can choose from thousands of providers now accepting Tax-Free Childcare as payment
including wraparound care or childminders for term time care, or holiday clubs and workshops during
the school holidays.
Once an account is open, parents can deposit money to use straight away or keep it in the account
for 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 Any unused money in the account can be withdrawn at any time.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 to help with higher
childcare costs that are often involved, 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
Tax-Free Childcare can be used alongside the free childcare hours, subject to eligibility.
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