Overview

• Just 39% of eligible parents are aware of the Tax-Free Childcare Scheme that can save up to £2,000 per child each year
• The government adds £2 for every £8 deposited into approved childcare accounts, capped at £500 per quarter or £1,000 for children with disabilities
• Families can set up an account through the government website in about 20 minutes and use or withdraw funds immediately
• Each parent must work at least 16 hours a week at National Minimum or Living Wage, earn no more than £100,000 annually, and not claim Tax Credits, Universal Credit or childcare vouchers
• Rising costs have driven parents to the brink of overspending ahead of the holidays, making early application critical to maximizing relief