Half-term help with childcare costs in the UK

Under the TFC scheme, the government adds money to the contributions made by parents. For every £8 that parents contribute, the government provides an additional £2, up to a maximum of £10,000 per child per year. This allows parents to save up to £2,000 per child annually (or up to £4,000 for disabled children until the age of 17) on childcare costs.

The TFC scheme is accessible to all eligible parents, including those who are self-employed or earning minimum wage. It is also available to parents on paid sick leave, as well as those on paid or unpaid statutory maternity, paternity, and adoption leave. To qualify for the scheme, parents must be employed for at least 16 hours per week and earn at least the National Minimum Wage or Living Wage. However, if either parent earns more than £100,000, both parents are ineligible for the scheme.

The Director General for Customer Services at HMRC encourages working families to take advantage of Tax-Free Childcare to stretch their money further. To find out more about the program and how it can benefit you, you can search for ‘Tax-Free Childcare’ on the GOV.UK website.