Tax-Free Childcare Scheme

Getting StartedGlossary of Tax Terms
Published on June 30, 2026

The Tax-Free Childcare scheme is a UK government initiative designed to help working parents cover the costs of childcare.

It provides extra financial support from the government when you top up a dedicated online childcare account.

Key Points to Remember

  • The government adds £2 for every £8 you personally save into the account.
  • Worth up to £2,000 per child, per year in free childcare subsidies.
  • Features a strict individual income cap of £100,000.
  • Runs entirely separate from Child Benefit, though both hit tax triggers at higher incomes.
  • Cannot be used concurrently with employer-provided childcare vouchers.
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