Working parents are being urged to check whether they could cut their childcare bills this October half-term, with more than 600,000 families already benefiting from a Government-backed savings scheme.
Latest figures from HM Revenue and Customs (HMRC) show that 601,620 families received a share of £55.7million in Government top-ups through Tax-Free Childcare in June.
Families received an average of £93 each in extra support that month.
The scheme works by topping up the money parents pay into their childcare account. For every £8 deposited, the Government adds £2, helping eligible families save up to £2,000 a year for each child aged 11 or under.
For disabled children, the maximum rises to £4,000 a year until the child turns 16.
The support could help parents cover the cost of childcare during the October half-term break, including holiday activity clubs and other approved childcare, as well as nursery fees and before- and after-school clubs throughout the year.
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Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “Paying for childcare while you work doesn’t have to be a nightmare for your bank balance this Hallowe’en. Tax-Free Childcare can make a real difference. Go to GOV.UK to find out more today.”
Eligible parents can open an account here - and receive up to £500 every three months towards childcare costs, rising to £1,000 if their child is disabled.
Once an account is open, parents can pay money in and use it straight away, or leave it there for future childcare bills. Any unused money can be withdrawn at any time.
Who can get Tax-Free Childcare?
Families may qualify if they meet the following criteria:
- They have a child aged 11 or under. Eligibility ends on 1 September after the child’s 11th birthday.
- For a disabled child, support can continue until 1 September after their 16th birthday.
- The parent and their partner, if they have one, each earn or expect to earn at least the National Minimum Wage or National Living Wage for an average of 16 hours a week.
- Neither parent earns more than £100,000 a year.
- They do not receive Universal Credit or childcare vouchers.
Tax-Free Childcare can be used alongside free childcare hours, subject to eligibility.
Parents can check the full eligibility rules and apply through GOV.UK.
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