Parents slow to embrace tax–free childcare

Tax free road sign

More than 91,000 families in the UK took advantage of tax-free childcare in December 2018, the latest government statistics have revealed.

 

Tax-free childcare provides help with childcare costs for working parents who earn more than £120 a week and less than £100,000 a year.

 

For every £8 a parent pays into their tax-free childcare account, the Government adds an extra £2 – up to a maximum of £2,000 per child a year, or £4,000 a year for children with disabilities.

 

To be eligible for the scheme, which began its phased rollout in April 2017, children must be aged 12 and under or 16 and under for children with a disability.

 

In the months following completion of the phased rollout in February 2018, the number of children registered with the scheme rose to 109,000.

 

Parents can open an online account for savings which can be used to cover childcare costs including nurseries, childminders, after-school clubs and holiday clubs.