HMRC has released new figures showing that more families are taking advantage of the Tax-Free Childcare scheme—and it could be worth checking if you’re eligible too.
💡 In the 2024–25 tax year, nearly 826,000 families saved up to £2,000 per child, with usage up 16% compared to the year before.
💷 What Is Tax-Free Childcare?
The scheme helps working parents save on childcare costs by offering a 25% top-up from the government.
For every £8 you pay into a Tax-Free Childcare account, the government adds £2, up to:
-
£2,000 per child each year
-
Or £4,000 per year if your child is disabled
🎯 The funds can be used any time to pay for registered childcare providers.
👨👩👧 Who Can Apply?
To qualify, you must:
✅ Have a child aged 11 or under (or under 17 if they have a disability)
✅ Work at least 16 hours a week and earn at least the Minimum or Living Wage
❌ Earn less than £100,000 per year, per parent
❌ Not be claiming Universal Credit or childcare vouchers
📌 Final Tip
This scheme is underused—and many families who qualify don’t even realise it exists. If you or your employees are paying for childcare, it’s well worth checking out.