HMRC helps 826,000 families save up to £4,000 through scheme – can you apply? | Personal Finance | Finance

Nearly 826,000 working families saved up to £4,000 worth of childcare per child through the Tax-Free Childcare scheme in the last tax year. HM Revenue and Customs (HMRC) is encouraging those yet to sign up for the scheme to do it now if they’re eligible.

The scheme provides working families with children up to the age of 11, or 16 if their child has a disability, with up to £2,000 a year per child or £4,000 a year if their child is disabled, to put towards any approved childcare. This includes holiday clubs, breakfast and after-school clubs, childminders and nurseries.

Latest figures from HMRC show that in March 2025, 579,560 families in the UK used the scheme to save on their annual childcare bills, an increase of 81,770 families compared to the previous March.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Summer can be an expensive time if you have children. Whatever you’re planning, Tax-Free Childcare can give your plans a welcome financial boost. Go to GOV.UK to start saving today.”

For every £8 deposited in a Tax-Free Childcare account, the Government tops it by £2. This means parents can receive up to £500 (or £1,000 if their child is disabled) every three months towards paying for their childcare costs.

Once families have opened a Tax-Free Childcare account, they can deposit money and use it immediately or keep it in the account to use whenever needed. Any unused money in the account can be withdrawn at any time.

Families could be eligible for Tax-Free Childcare if they:

• Have a child or children aged 11 or under. They stop being eligible on September 1 after their 11th birthday. If their child has a disability, they receive up to £4,000 a year until September 1 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 earns no more than £100,000 per annum
• Do not receive Universal Credit or childcare vouchers.

Families can get Tax-Free Childcare at the same time as 30 hours of free childcare if they’re eligible for both. People can check eligibility and register for an account here.