Unlock Savings: How Working Parents Can Claim a Free £500 Top-Up for Childcare Costs

Discover how working parents can access a free £500 top-up for childcare costs this summer through the Tax-Free Childcare scheme. Learn about eligibility criteria and the benefits of this financial support.

Parents Urged to Claim Free £500 Top-Up for Childcare Costs

As the summer break approaches, HM Revenue and Customs (HMRC) is encouraging working families to take advantage of a valuable opportunity to save on childcare expenses. With just 10 weeks left until schools close for the summer, parents can benefit from the Tax-Free Childcare scheme, offering annual savings of up to £2,000 per child, or £4,000 for children with disabilities.

Tax-Free Childcare is designed to assist with the costs of approved childcare for children aged 11 or under, extending to 16 for children with disabilities. Parents can receive up to £500 (or £1,000 for disabled children) every three months, with the government providing a £2 top-up for every £8 deposited into their online account.

Myrtle Lloyd, HMRC’s Director General for Customer Services, emphasized the ease of applying for a Tax-Free Childcare account, highlighting its versatility in covering expenses such as nursery fees, childminders, and holiday activity clubs. Lloyd stated, ‘Springtime is a good time to take a fresh look at family finances. A quick check online can reveal how Tax-Free Childcare significantly reduces childcare expenses, offering valuable financial support.’

Eligibility Criteria for Tax-Free Childcare

Families may qualify for Tax-Free Childcare if they:

Have children aged 11 or under, with eligibility ceasing on September 1 following the child’s 11th birthday.
Have a child with a disability, potentially receiving up to £4,000 annually until September 1 after the child’s 16th birthday.
Earn, or anticipate earning, at least the National Minimum Wage or Living Wage for a minimum of 16 hours per week.
Each earn less than £100,000 per year.
Do not receive Tax Credits, Universal Credit, or childcare vouchers.

To explore available childcare options and determine the best fit for their family, parents can visit Childcare Choices on GOV.UK.

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