Overview
- Under the scheme, every £8 paid into a childcare account triggers a £2 government top-up for use with approved providers.
- Support is capped at £500 per child each quarter (£2,000 a year), rising to £1,000 quarterly (£4,000 a year) for eligible disabled children.
- Claimants must be working or on qualifying leave and meet minimum expected earnings over the next three months, with ineligibility if either partner’s adjusted net income exceeds £100,000.
- Children must usually live with the claimant and be 11 or under, with adopted children eligible, foster children excluded, and disability support available until after the 16th birthday when criteria are met.
- Tax-Free Childcare cannot be combined with Universal Credit, childcare vouchers or some bursaries, and payments can go to childminders, nurseries, nannies and after-school clubs.