1.4m households missing out on tax-free childcare



The amount of families taking up tax-free childcare has more than doubled since this time last year at around 125,000. However, this still falls short of the Government's estimate that 1.4m families could have qualifying childcare costs. 



Tax-free childcare was launched in April 2017 and fully rolled out by February 2018. It replaced the previous scheme of childcare vouchers, which closed to new applicants in October 2018.


Under tax-free childcare, parents can open an account and receive Government contributions to cover childcare costs. 


For every £8 they save, the Government adds and extra £2, up to a maximum of £2,000 per child, per year - or £4,000 for disabled children.


Parents who were already receiving childcare vouchers before October 2018 can still claim them, but will lose access if they don't order any within 12 months, if they change employer, or if they switch to tax-free childcare.


To check eligibility and make an application, please click here.