More than 401,300 families saved on childcare costs in September
More than 401,300 families received government funding of £44.4million for childcare costs in September 2022, HM Revenue and Customs (HMRC) found.
Compared to September 2021, the latest duty-free childcare statistics show the number of families using duty-free childcare increased by 85,475. But thousands of families are still missing out on the supplement that could help them. save up to £2,000 per year per child in the cost of their childcare.
Tax-Free Childcare provides working families, earning up to £100,000 a year, with financial support for childcare. For every £8 paid into a Tax-Free Childcare online account, families will automatically receive an additional £2 from the government. This means they can receive up to £500 every three months (£2,000 per year) or £1,000 (£4,000 per year) if their child is disabled.
Top-up payments can be used to pay for any approved child care for children aged 11 or under, or up to age 17 if the child has a disability, whether your child attends daycare, have part-time child care or go to a vacation club.
Families can check their eligibility and view childcare assistance options on Childcare Choices.
Myrtle Lloyd, HMRCThe Managing Director of Client Services, said:
We know childcare can be expensive, which is why using duty-free childcare can make a huge difference to household finances. To find out more, search for “Tax-Free Childcare” on GOV.UK.
Families may be eligible for Tax-Free Childcare if they:
- have a child or children aged 11 or under. They cease to be eligible on September 1 after their 11th birthday. If their child has a disability they can get up to £4,000 a year up to the age of 17
- earn, or expect to earn, at least the national minimum wage or living wage for 16 hours per week, on average
- each earns no more than £100,000 a year
- do not receive tax credits, universal credit or childcare vouchers
A full list of eligibility criteria is available on GOV.UK.
Opening a Tax-Free Childcare account online is simple and can take around 20 minutes to register. Accounts can be opened at any time, money can be deposited and used immediately or when needed. Unused money in the account can be withdrawn at any time. Go to GOV.UK to register and get started.
The government has launched an awareness advertising campaign to ensure that families receive the childcare support to which they are entitled. Visit Childcare Choices to learn more about the options and find the best childcare deal for families.
The government offers help to households. Check GOV.UK to find out what cost of living support, including help with childcare costs, families may be eligible for.
More information about Tax-Free Childcare and how to register.
The latest Tax-Free Childcare statistics were released on November 16, 2022. Data is available through September 2022.
HMRC produced an updated guide to tax-free child care for parents, which explains the reasons and benefits of joining the program.
Each eligible child needs their own Tax-Free Childcare account. If families have more than one eligible child, they will need to create an account for each child. The 20% government top-up is then applied to deposits made for each child, not the household.
Account holders must confirm that their details are up-to-date every three months to continue receiving the government top-up.
Childcare providers can also open a Childcare Provider Account through GOV.UK to receive payments from parents and guardians through the scheme.