Tax-free childcare is a government scheme to help eligible working families save on their childcare costs.  Eligible working parents and carers can open online childcare accounts – just like an online bank account – to pay registered childcare providers directly.

For every £8 paid into an account, the Government will add £2 (£4 for a disabled child), and the total amount in the account can only be spent on childcare. The maximum that can be paid into an account each year is £8,000 and the maximum that will be received from the Government is £2,000 (£4,000 for disabled children.)

Parents can open an individual account for each child they pay childcare for. For example, if you have three children, you can open three tax-free childcare accounts and deposit up to £8,000 into each.

Only a parent or carer can set up a tax-free childcare account, however money can be deposited into the account by parents, friends, family and employers.

For further information about this or other childcare support visit Childcare (link to external website).