Answers · UK 2025/26
What is Tax-Free Childcare in the UK?
Tax-Free Childcare gives a 20% top-up on UK childcare costs — up to £2,000/year per child under 12 (£4,000 for disabled children under 17). For every £8 you pay in, the government adds £2. Open to working parents earning £167+/week each but under £100k each.
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Tax-Free Childcare (TFC) — UK government scheme replacing the older Childcare Voucher scheme (closed to new entrants in October 2018). Eligibility: parents (single or both partners) working at least 16 hours/week earning at least £167/week (£8,668/year for over-21s on National Living Wage); neither parent earning over £100,000 (adjusted net income); child under 12 (under 17 if disabled). Maximum government contribution: £2,000/year per child (£4,000 for disabled child) — paid as 20% top-up. You pay into your TFC online account; government adds 20% on every contribution up to the cap; provider draws from account. Compatible with: 15/30 hours free childcare, Universal Credit childcare element. Not compatible with: old-style Childcare Vouchers (employer salary sacrifice) — if you have those and your circumstances haven't changed, you might be better off keeping them; HMRC online tool compares. Approved childcare: registered childminders, nurseries, holiday clubs, breakfast/after-school clubs (must be registered with Ofsted in England). Apply at gov.uk/tax-free-childcare. Reconfirm eligibility every 3 months.
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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.