HMRC urges parents to use Tax-Free Childcare for half-term

Summarised from 4 outlets · Updated 18 Oct, 10:27 · Archive

More than 601,000 families received Government top-ups through Tax-Free Childcare in June, averaging £93 each.

Working parents are being urged to use the Government-backed Tax-Free Childcare scheme to reduce their half-term childcare costs. Latest figures from HM Revenue and Customs show that 601,620 families received a share of £55.7 million in Government top-ups through the scheme in June, with families receiving an average of £93 each in extra support that month.

The scheme works by topping up money parents pay into their childcare account. For every £8 deposited, the Government adds £2. Eligible families can save up to £2,000 a year for each child aged 11 or under. For disabled children, the maximum rises to £4,000 a year until the child turns 16.

Eligible parents can open an account and receive up to £500 every three months towards childcare costs, rising to £1,000 if their child is disabled. Once an account is open, parents can pay money in and use it straight away, or leave it for future childcare bills. Any unused money can be withdrawn at any time.

The support can be used to cover childcare during the October half-term break, including holiday activity clubs and other approved childcare, as well as nursery fees and before- and after-school clubs throughout the year. Tax-Free Childcare can be used alongside free childcare hours, subject to eligibility.

Myrtle Lloyd, HMRC's Chief Customer Officer, said: 'Paying for childcare while you work doesn't have to be a nightmare for your bank balance this Hallowe'en. Tax-Free Childcare can make a real difference.' Parents can check the full eligibility rules and apply through GOV.UK.

How it is being reported

• HMRC warning to working parents as October half-term approachesMore than 600,000 families received Tax-Free Childcare top-ups in June. Find out how parents could cut half-term childcare costs.NW Evening Mail · 18 Oct, 10:07
• HMRC warning to working parents as October half-term approachesMore than 600,000 families received Tax-Free Childcare top-ups in June. Find out how parents could cut half-term childcare costs.Whitehaven News · 18 Oct, 10:07
• HMRC warning to working parents as October half-term approachesMore than 600,000 families received Tax-Free Childcare top-ups in June. Find out how parents could cut half-term childcare costs.Westmorland Gazette · 18 Oct, 10:07
• HMRC warning to working parents as October half-term approachesMore than 600,000 families received Tax-Free Childcare top-ups in June. Find out how parents could cut half-term childcare costs.Cumberland News · 18 Oct, 10:07

In this story: HM Revenue and Customs · Myrtle Lloyd

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