Parents facing expensive summer holiday childcare bills are being urged to check whether they are missing out on a government scheme worth up to £2,000 per child every year.
Despite nearly 900,000 families already benefiting, thousands of eligible parents still have not signed up for Tax-Free Childcare - a little-known scheme that effectively gives families free money towards childcare costs.
The warning comes as the summer holidays approach, when many parents face some of the highest childcare bills of the year.
New figures show a record 868,095 families are now using the scheme after the Government paid out almost £600 million in top-up payments during the last financial year.
Under the scheme, parents receive an extra £2 from the Government for every £8 they pay into a childcare account.
That means eligible families can receive up to £2,000 per child every year, rising to £4,000 for children with disabilities.
HMRC is encouraging parents to check their eligibility now rather than waiting until holiday childcare costs start mounting up.
Myrtle Lloyd, HMRC's Chief Customer Officer, said: "£2,000 is not a small amount and it can make a real difference - especially with the childcare costs of the summer holidays approaching.
"If you haven't signed up yet, don't miss out."
Who is eligible for Tax-Free Childcare?
Families could be eligible for Tax-Free Childcare if:
- they have a child or children aged 11 or under. They stop being eligible on September 1 after their 11th birthday. If their child has a disability, they receive up to £4,000 a year until September 1 after their 16th birthday
- the parent and their partner (if they have one) earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average
- each earn no more than £100,000 per annum
- do not receive Universal Credit or childcare vouchers
Families can check their eligibility and apply on GOV.UK.
Recommended reading:
- M&S is giving away a free £79 Clinique beauty box - here's how to get one today
- Five super easy ways to stay cool and sleep better during a heatwave
- How to get £40 M&S Beauty Bag and full list of products worth more than £230
The money can be used for approved childcare, including childminders, nurseries, breakfast clubs, after-school clubs and holiday activity schemes.
Many parents are unaware that they can use Tax-Free Childcare alongside the Government's free childcare hours offer, potentially increasing the support available.
With childcare remaining one of the biggest expenses for working families, checking eligibility could unlock thousands of pounds in support before the summer break begins.
Have you taken advantage of Tax-Free Childcare? Let us know in the comments.
Share