Tax-Free Childcare
Tax-Free Childcare is a government scheme that helps working families with the cost of childcare.
Who can get Tax-Free Childcare?
Check if you are eligible for Tax-Free Childcare .
What can the funding be used for?
Tax-Free Childcare can be used to pay for:
- registered childminders, nurseries and nannies that are 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 money can then be used to pay your childcare provider.
You cannot claim Tax-Free Childcare and Universal Credit Childcare Costs at the same time.
What do parents need to do?
- Apply online through the Government website
- Set up a childcare account.
- Use your childcare account to pay your provider.
Universal Credit Childcare Costs
Universal Credit Childcare Costs helps working families who receive Universal Credit with the cost of registered childcare.
Who can get Universal Credit Childcare Costs?
To find out if you are eligible, visit Best Start in Life .
What can the funding be used for?
Universal Credit Childcare Costs can 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?
Universal Credit Childcare Costs can cover up to 85% of your eligible childcare costs.
You cannot claim Universal Credit Childcare Costs 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 able to get help with upfront childcare costs if you are starting work or increasing your working hours. Speak to your Universal Credit work coach for more information.
What do parents need to do?
- Apply through your Universal Credit account.
- Pay your childcare costs.
- Submit proof of childcare costs through your Universal Credit account to receive reimbursement.