Answers · UK 2025/26

How much do I need to pay in to get the full GBP 2,000 Tax-Free Childcare top-up?

You need to pay GBP 8,000 of your own money into your childcare account across the year. The government adds 20%, capped at GBP 2,000 per child per year (GBP 500 per quarter), so GBP 8 from you plus GBP 2 top-up makes GBP 10. Disabled children get up to GBP 4,000.

Last updated: 10 June 2026Last reviewed: 10 June 2026How we verify

Full answer

Tax-Free Childcare gives a 20% government top-up on what you pay into an approved online childcare account, mirroring basic-rate tax relief. For every GBP 8 you deposit, the government adds GBP 2, up to GBP 500 per child each quarter, which is GBP 2,000 per child per year (GBP 4,000 for a disabled child). To get the full GBP 2,000 you must pay in GBP 8,000 yourself over the year. Worked example: a family with one child paying GBP 1,000 a month in nursery fees deposits GBP 800 of their own money each month, the government adds GBP 200, and the GBP 1,000 is paid to the nursery. Over 12 months they put in GBP 9,600 but the top-up is capped at GBP 2,000, so deposits beyond GBP 8,000 do not earn extra. The quarterly GBP 500 cap matters: front-loading deposits in one quarter can waste the cap, so spreading payments helps maximise the top-up. Eligibility for 2026/27 generally needs each parent earning at least the National Living Wage equivalent (around GBP 195 a week at GBP 12.71 for 21+) and under GBP 100,000 adjusted net income each. You cannot use it at the same time as Universal Credit childcare or childcare vouchers. The child must usually be 11 or under (16 if disabled). Use the savings calculator to plan deposits. Confirm eligibility and open an account at gov.uk/tax-free-childcare.