Did you know that help is available for school holiday childcare costs?
Working parents could be entitled to Tax-Free Childcare worth up to £2,000 per child per year to pay towards regulated holiday clubs during the school holidays.
Parents can choose from more than 68,000 childcare providers that have signed up, including school and summer camps across the country.
If parents pay into their Tax-Free Childcare account regularly, they can ‘save up’ their money and use it for childcare during school holidays. For every £8 that families pay in, the government will make a top-up payment of an additional £2. The money saved can be put towards a whole range of other childcare options, including before and after school care when term time starts again in September.
The scheme is open to working parents, including the self-employed, who earn between the minimum wage and £100,000 per year and have children aged 0-11 years old.
Read our “Making School holidays adventure days” article
How Tax-Free Childcare works
Working parents can apply, through the childcare service, to open an online childcare account. The scheme is available for children under the age of 12, or under the age of 17 for children with disabilities.
If you or your partner have an ‘adjusted net income’ over £100,000 in the current tax year, you will not be eligible. This includes any bonuses you expect to get.
For every £8 that families pay in, the government will make a top-up payment of an additional £2, up to a maximum of £2,000 per child per year (or £4,000 for disabled children). This top-up is added instantly and parents can then send payments directly to their childcare providers. The maximum government top-up is £500 per quarter for each child, or £1,000 if the child is disabled.
All registered childcare providers – whether nannies, nurseries, childminders or after-school clubs – can sign up online now to receive parents’ payments through Tax-Free Childcare.
Parents need to sign back in every three months and confirm their details are up-to-date, to keep getting government top-ups.