Many families unaware of Tax-free Childcare scheme

Many families unaware of Tax-free Childcare scheme

Posted: Tue, 12 Dec 2023 12:56

Many working families are unaware of the government's Tax-free childcare scheme according to the latest data from HMRC. Citizens Advice Charnwood explains what it is, who might be eligible and how to claim.

The Tax-free childcare scheme (TFC) is a government scheme introduced in April 2017 to help working parents with the cost of childcare. Parents can open an online savings account which they can use to pay for childcare from an accredited and registered provider.
Currently it is possible to save up to £2,000 per child per year. For every £8 parents pay in, the government will add an extra £2.

Those eligible are:
Working parents, including the self-employed, with children 0-11 (16 if disabled) if one or more of the following applies:

  • both you and your partner work 16 hours per week or more (earning at least National Minimum Wage) (NMW) or National Living Wage (NLW)
  • your individual annual employment income is below £100,000
  • you are a single parent
  • you have a child or children aged under 12 (under 17 if disabled).

You can check your eligibility, how to apply and how to pay your childcare provider by following this link to the website -

You can't join TFC if you use:
Universal credit, Tax Credits, Childcare Vouchers (closed to new entrants). Families claiming universal credit can claim back up to 85% of childcare costs

From April 2024
there will be significant changes coming to 15 and 30 hours childcare support in England which will be extended in phases to include children from 9 months to school age. Sign up for more details on how and when to register at -

Our Local Enquiry Line is 01509 649605 open Mondays, Tuesdays & Thursdays 9.30am-3.00pm. The National Advice Line is open Mondays-Fridays 9am-5pm on Freephone 0800 144 8848.
Our website is & online advice can be found on

We are currently looking for Trustees to join our team.

As a trustee you will have the chance to help lead an organisation dedicated to the advice needs of Charnwood residents. If you are interested more information can be found on our website - or you can contact our Administrator by email at:

We welcome volunteers from all backgrounds.

Tags: Childcare, childcare costs, children, families, help, tax-free