You pay your childcare provider from the account. It covers nurseries, childminders, nannies, after school and holiday clubs, as long as the provider is registered and signed up.
Quick facts
- Top-up
- £2 for every £8 you pay
- Maximum
- £2,000 a year per child
- Disabled child
- Up to £4,000 a year
- Age
- Up to 11, or 16 if disabled
- Income cap
- £100,000 each
- Reconfirm
- Every 3 months
How it works
You’ll need to set up a childcare account, which both you and the government will pay into. You can then use this money to pay your childcare provider.
For every £8 you pay into the account, the government will top it up by £2.
The total top up you can get for each child is £500 every 3 months (up to £2,000 a year). This goes up to £1,000 every 3 months if your child is disabled (up to £4,000 a year).
| Your childcare bill | You pay in | The government adds |
|---|---|---|
| £250 | £200 | £50 |
Who can get it — the full rules
You’ll usually need to be working (or returning to work) and your child must be 11 or younger (16 or younger if they’re disabled).
You cannot claim if any of the following are true:
- your child does not usually live with you
- you foster the child you’re applying for
- you or your partner’s expected adjusted net income (including any foreign income) is over £100,000 for the current tax year
- you or your partner get a childcare bursary or grant
If you get Universal Credit
If you claim either Universal Credit or childcare vouchers, you cannot get Tax-Free Childcare at the same time. Universal Credit has its own help with childcare costs, so work out which is worth more before you switch.
What you can pay for
You can use it to pay for childminders, nurseries and nannies, and after school clubs, breakfast clubs and holiday clubs.
Your childcare provider must be signed up to the Tax-Free Childcare scheme. Before you apply, you’ll need to check with your provider that they’re already signed up.
Keeping it
You must sign in to your childcare account every 3 months to confirm you’re still eligible. If you do not, your Tax-Free Childcare will stop.
You can use it alongside free childcare hours in England.
Common questions
How much is Tax-Free Childcare worth?
The government adds £2 for every £8 you pay, up to £500 every 3 months per child (£2,000 a year), or £1,000 every 3 months for a disabled child.
Can I get it with Universal Credit?
No. If you claim Universal Credit or childcare vouchers you cannot get Tax-Free Childcare at the same time.
What age can my child be?
11 or younger, or 16 or younger if they are disabled.
What happens if I forget to reconfirm?
Your Tax-Free Childcare will stop. You must sign in every 3 months.