Overview

• In March 2025, 579,560 families used the Tax-Free Childcare scheme, up 81,770 from the previous year.
• Almost 826,000 households saved up to £2,000 per child or up to £4,000 for disabled children during the 2024–25 tax year.
• The government adds £2 for every £8 deposited into eligible childcare accounts, funding registered providers such as nurseries and after-school clubs.
• Parents earning at least the National Minimum Wage for 16 hours a week and with annual incomes under £100,000 can apply online in about 20 minutes.
• HMRC estimates around 800,000 eligible families have yet to register for the scheme despite its summer financial boost.