Working parents across the UK could receive up to £2,000 per child each year through the government’s Tax-Free Childcare scheme, as HMRC reminds families to check their eligibility for support with childcare costs.
Government Adds Money to Childcare Savings Accounts
The Tax-Free Childcare scheme works by adding money to an online childcare account used to pay registered childcare providers. For every contribution made by parents, the government provides an additional payment.
According to Express, HMRC has highlighted that eligible families can receive a yearly boost of up to £2,000 per child, with support rising to £4,000 per child for children with disabilities.
The scheme provides a 25% government top-up, meaning parents receive extra funding when they add money to their account. The official guidance states: “The post continues: “The government adds £2 for every £8 you pay in, up to £2,000 a year per child (or up to £4,000 if your child is disabled).”
The government also reminded parents about the application process, saying: “Apply online to open a childcare account, then reconfirm eligibility every 3 months.”
Are you a working parent? You may be eligible for Tax-Free Childcare.
— GOV.UK (@GOVUK) September 8, 2026
Here’s what you need to know 👇
What is it?
A government scheme that helps towards cost of childcare.
Who is it for?
Working parents with a child aged 11 or under (or 16 or under if your child is…
Who Can Qualify for Tax-Free Childcare
To access the support, parents generally need to be working, returning to work, self-employed, or on certain types of leave. Each parent must expect to earn at least the equivalent of 16 hours a week at the National Minimum Wage or National Living Wage over the next three months.
The scheme is available for children aged 11 or under, while children with disabilities can qualify until they turn 16. Parents must also have an income below the scheme’s limit of £100,000 per year.
The government explains: “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.”
Limits and Requirements Parents Need to Know
The amount available is limited by government payment caps. Official guidance says: “For every £8 you pay into the account, the government will top it up by £2.”
It adds: “The total top-up you can get for each child is £500 every three months (up to £2,000 a year). This goes up to £1,000 every three months if your child is disabled (up to £4,000 a year).”
Parents must also ensure their childcare provider participates in the Tax-Free Childcare scheme before opening an account.
The guidance states: “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).”
It also warns: “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.”
Some Families Cannot Combine the Scheme with Other Support
Families receiving Universal Credit cannot claim Tax-Free Childcare at the same time. The scheme also cannot be used alongside legacy employer childcare voucher programmes.
Parents who qualify must renew their eligibility every three months to continue receiving government top-ups through their childcare account.
The government advises eligible families to apply online and check that their childcare provider is registered before making payments.
