Help paying for childcare costs
Tax-free Childcare
Tax-free Childcare is a government scheme that helps working families with the cost of childcare.
Who is eligible?
To see if you are eligible for Tax-Free Childcare, please click here to view the official eligibility criteria.
What is the funding for?
Tax-Free Childcare can be used to pay for:
- Registered childminders, nurseries, and nannies (if they are registered and signed up to the scheme)
- Before and after school clubs
- Holiday clubs
- Specialist equipment needed by the childcare provider
How does it work?
- For every £8 you pay into your childcare account, the government adds £2.
- The funding is paid directly to your childcare provider.
- You cannot claim Tax-Free Childcare and Universal Credit Childcare at the same time.
What do parents need to do?
- Apply online via the Best Start in Life website
- Set up a childcare account and use it to pay your provider.
Universal Credit Childcare
Universal Credit Childcare helps working families on Universal Credit with the cost of registered childcare.
Who is eligible?
To see if you are eligible for Universal Credit Childcare, please visit Best Start in Life.
What is the funding for?
Universal Credit Childcare can be used to cover up to 85% of eligible childcare costs for:
- Registered childminders, nurseries, and nannies
- Registered after-school clubs and playschemes
- Registered schools
- Home care workers registered with the Care Quality Commission (CQC)
How does it work?
- Funding is paid directly to your childcare provider.
- You cannot claim Universal Credit Childcare and Tax-Free Childcare at the same time.
- Support is available for children under 17, up to the end of August following their 16th birthday.
- You may also be eligible for help with upfront childcare costs when starting or increasing work—speak to your Universal Credit work coach for details.
What do parents need to do?
- Apply through your Universal Credit account.
- Submit proof of childcare costs to receive reimbursement.