Families are being reminded about the scheme, which could save them thousands of pounds
Government bosses have announced that working parents across the UK could be set for boosts of up to £2,000 per child.
HM Revenue and Customs (HMRC) runs a scheme through which many of those earning below £100,000 may be eligible for Tax-Free Childcare, designed to help families reduce their childcare costs. In addition to earning beneath the aforementioned threshold, you will qualify if you have a child aged under 11, or under 16 if your child has a disability.
The savings can be used towards school clubs, childminders and other wraparound childcare provision. A recent post on X, formerly Twitter, from the official GOV UK account explains: “The government adds £2 for every £8 you pay in, up to £2,000 a year per child (or up to £4,000 if your child is disabled).”
The post adds that parents can apply online to open a childcare account and must reconfirm their eligibility every three months. The scheme is worth up to £2,000 per child each year, or up to £4,000 for children with additional needs.
Once a Tax-Free Childcare account has been set up for each child, the government contributes an extra £2 for every £8 deposited. According to the most recent figures, 602,000 families were making use of Tax-Free Childcare for 745,000 children in June 2026.
Families can choose from thousands of childcare providers that now accept Tax-Free Childcare as a form of payment, including wraparound care or childminders for arrangements during term time, or holiday clubs and activities throughout school holidays. Once an account has been opened, parents can pay money in to use straight away or leave it in the account until it is needed.
Any funds left in the account can be taken out at any time.
