- This Playday (6 August),
working families are encouraged to sign up for Tax-Free Childcare
to save on their childcare bills.
- Working families can save up to £2,000 annually when paying
for childcare in 75,000 childcare settings across the UK.
- Supporting the government's mission to grow the economy and
deliver on the Plan for Change by putting more money in the
pockets of working people.
To mark Playday 2025 (6 August), HM Revenue and Customs
(HMRC) is encouraging
working families to save money by signing up to Tax-Free
Childcare and using one of the thousands of facilities accepting
it as payment.
Tax-Free Childcare means working families can save up to £2,000
annually for each child up to the age of 11, and £4,000 for a
disabled child up to the age of 16, when they're paying for their
childcare.
There are now 75,000 childcare settings accepting Tax-Free
Childcare as payment including nurseries, registered
childminders, holiday activity clubs and, for when school starts
back in September, before and after school clubs.
Playday is an annual celebration of children's right to play,
highlighting the importance of play in their health, wellbeing
and development.
Myrtle Lloyd, HMRC's
Chief Customer Officer said:
“Whether your child is interested in football, climbing, crafting
or dance, there's a huge variety of childcare settings accepting
Tax-Free Childcare. Children can learn something new and have fun
with their friends while their parents save on their childcare
bills. Visit GOV.UK to sign up today.”
Families yet to sign up for Tax-Free
Childcare can do it now to pay for their summer activities or
start paying into it ready for breakfast and after-school clubs
when the new term starts.
Once families have opened a Tax-Free Childcare account, they can
deposit money and use it straight away or keep it in the account
to use it whenever it's needed. Any unused payments can be
withdrawn at any time.
For every £8 deposited in a Tax-Free Childcare account, the
government tops it up by £2, which means parents can receive up
to £500 (or £1,000 if their child is disabled) every 3 months
towards their childcare costs.
Families could be eligible for Tax-Free Childcare if
they:
-
have a child or children aged 11 or under. They stop being
eligible on 1 September after their 11th birthday. If their
child has a disability, they receive up to £4,000 a year
until 1 September after their 16th birthday
-
the parent and their partner (if they have one) earn, or
expect to earn, at least the National Minimum Wage or Living
Wage for 16 hours a week, on average
-
each earn no more than £100,000 per annum
-
do not receive Universal Credit or childcare
vouchers
Visit GOV.UK to check eligibility and register for Tax-Free Childcare.
Tax-Free Childcare can be used alongside the free childcare
hours, subject to eligibility.
Further Information
Playday is the national day for play, celebrated each year across
the UK on the first Wednesday in August. For more information
visit the Playday website.
Latest Tax-Free Childcare
statistics with data available up to March 2025 were released
28 May.
More information about Tax-Free Childcare and how
to register.
Each eligible child requires their own Tax-Free Childcare
account. If families have more than one eligible child, they will
need to register an account for each child. The government top-up
is then applied to deposits made for each child, not household.
Account holders must confirm their details are up to date every 3
months to continue receiving the government top-up.
Childcare providers can also sign up for a childcare provider account
via GOV.UK to receive payments from parents and carers via
the scheme.
