Answers · UK 2025/26
Do childcare vouchers still exist in the UK?
Childcare vouchers closed to new joiners on 4 October 2018. Existing members can continue while in the same employment. Most parents are now better off using Tax-Free Childcare (20% government top-up, £2,000/year per child) — except higher-rate taxpayers with high childcare costs.
Full answer
UK childcare vouchers 2025/26 — closed scheme. Closure: scheme closed to new joiners on 4 October 2018. Existing members (joined before that date) can continue, provided they remain with the same employer and their employer still operates the scheme. Tax-free voucher amounts: basic-rate £243/month (£2,916/year), higher-rate £124/month (£1,488/year), additional-rate £110/month (£1,320/year). Maximum saving per parent: basic-rate £933/year, higher-rate £625/year, additional-rate £620/year. Salary sacrifice: typically structured this way, also saving NI. Replacement scheme: Tax-Free Childcare (TFC) — available to working parents, 20% top-up (government adds £2 for every £8 paid), max £2,000/year per child under 12 (£4,000 for disabled under 17). Cannot use both — only one at a time. Switch costs you: once you switch to TFC, you cannot go back to vouchers. Decision rule: TFC better if you have multiple children or high childcare costs; vouchers better if you're a basic-rate taxpayer with one child under 6 and lower bills. MoneyHelper has a comparator tool. With expanded free childcare hours (15-30 hours from 9 months by Sept 2025), vouchers/TFC may be less needed for younger children.
Try the calculator
More answers
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.