# How much is Tax-Free Childcare worth?

> Quick answer · Last updated 4 July 2026

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## In short

Tax-Free Childcare adds 20% on top of what you pay in — up to £500 per quarter per child (£2,000 a year), or £1,000 per quarter (£4,000 a year) if your child is disabled. Both parents must usually work and earn under £100,000 each.

For every £8 you pay into your childcare account, the government adds £2 until you hit the quarterly cap. It covers registered childcare including nurseries, childminders and after-school clubs — not informal care.

Eligibility requires each parent (or the sole parent in single-parent households) to expect to earn at least the equivalent of 16 hours a week at National Living Wage and under £100,000 adjusted net income per year. You cannot use Tax-Free Childcare alongside Universal Credit childcare costs or Tax Credits.

Open an account at gov.uk/tax-free-childcare and reconfirm eligibility every three months. See our Tax-Free Childcare eligibility checker and full family guide for free hours rules.

## Related

- [Tax-Free Childcare guide](https://moneyguide.org.uk/family-life/tax-free-childcare-and-free-hours/)
- [Am I eligible for Tax-Free Childcare?](https://moneyguide.org.uk/eligible-for/tax-free-childcare/)
- [Child Benefit explained](https://moneyguide.org.uk/answers/how-much-is-child-benefit/)

## Primary source

gov.uk/tax-free-childcare

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.