More than 600,000 families saved with Tax-Free Childcare, HMRC says

More than 600,000 families cut their childcare costs with Tax-Free Childcare, HM Revenue and Customs (HMRC) has said.

HMRC said 601,620 families received a share of £55.7 million in government top-ups in June, an average of £93 each. Families in England can use the scheme alongside their free childcare hours, subject to eligibility.

HMRC is encouraging more working parents to sign up ahead of the half-term holidays.

How it works

For every £8 parents pay into their child's account, the government adds £2. Families can get up to £500 every 3 months for each child, or £1,000 if the child is disabled.

That means up to £2,000 a year for each child up to the age of 11, or £4,000 a year up to 16 if the child is disabled.

Money can be used straight away or kept in the account until it is needed. Any unused money can be withdrawn at any time.

Savings can be used for approved childcare, such as nursery for younger children, before and after school clubs, or activity clubs in the school holidays.

Who can get it

According to HMRC, families could be eligible if they:

• have a child aged 11 or under, or 16 or under if the child is disabled (eligibility ends on 1 September after the 11th or 16th birthday)
• earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week on average, and so does any partner
• each earn no more than £100,000 a year
• do not get Universal Credit or childcare vouchers

Each eligible child needs their own account. Account holders must confirm their details are up to date every 3 months to keep getting the top-up.

HMRC said childcare providers can also sign up for a childcare provider account on GOV.UK to receive payments from parents through the scheme.

The latest Tax-Free Childcare statistics, with data up to June 2026, were released on 26 August 2026.