Answers · UK 2025/26

How much can tax-free childcare save me in 2026/27?

Tax-Free Childcare gives you a 20% government top-up on what you pay for childcare, up to £2,000 per child a year, or £4,000 for a disabled child. For every £8 you pay in, the government adds £2, so the most you can spend through the scheme is £10,000 per child a year.

Last updated: 7 June 2026Last reviewed: 7 June 2026How we verify

Full answer

Tax-Free Childcare is a government scheme that tops up the money you spend on registered childcare for children under 12, or under 17 if the child is disabled. You open an online childcare account and for every £8 you pay in, the government adds £2, which is a 20% top-up that mirrors the basic rate of tax. The maximum top-up is £2,000 per child a year, or £4,000 for a disabled child, which means you can pay up to £10,000 per child of your own money through the scheme each year and receive the full government contribution. The scheme works on a quarterly basis, so you can receive up to £500 of top-up per child every three months. To qualify, each parent in the household generally needs to be working and earning at least the equivalent of 16 hours a week at the minimum wage, and neither parent can have an adjusted net income above £100,000 a year, as that disqualifies you completely. You cannot use Tax-Free Childcare at the same time as childcare vouchers or the childcare element of Universal Credit, so you should compare which is better for your circumstances. It can, however, be used alongside the 30 hours of free childcare available for eligible working parents. The money can pay for nurseries, childminders, after-school clubs and approved holiday clubs that are signed up to the scheme. Use a childcare cost calculator to estimate your annual childcare bill and see how much the 20% top-up would save you.