How much is Tax-Free Childcare worth?
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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.
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Reviewed by Kaiser Khan
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.
Primary source: gov.uk/tax-free-childcare
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