Updated: Dec 17, 2019
Great news! The government is introducing new ways to help parents with childcare costs.
One of the schemes you could benefit from is Tax-free Childcare.
This is a great scheme if you’re a working parent with children under 12. The government will pay up 20% of your childcare costs (up to £2000 per annum). You can open an online account for your child, and for every £8 you pay in, the government will pay £2. Of course, like everything there is a criteria you need to meet in order to be eligible and also, your childcare provider must be Ofsted registered.
You, and any partner, must each expect to earn (on average) at least £125 per week (equal to 16 hours at the National Minimum or Living Wage).
If you, or your partner, are on maternity, paternity or adoption leave, or you’re unable to work because you are disabled or have caring responsibilities, you could still be eligible.
You can’t get Tax-Free Childcare if either you, or your partner, each individually expect to earn £100,000 or more.
You can use Tax-Free Childcare all year round to help pay:
Registered childminders, nurseries and nannies
Registered after-school clubs and playschemes
Home careworkers working for a registered home care agency
You can use Tax-Free Childcare at the same time as:
You can’t use it with: