Childcare costs in the UK remain a heavy burden for many families. To ease the pressure, the government introduced the Tax-Free Childcare scheme in 2017, offering financial support to working parents. The scheme isn't limited to one type of childcare 鈥� it applies to a broad range of options, from registered childminders and nurseries to playgroups and holiday clubs. The government has recently introduced practical updates to make the scheme more accessible: faster application processing, simpler online management, and a smoother experience for parents.
Tax-Free Childcare: the latest updates
The Tax-Free Childcare scheme provides financial support to parents who work. Both employees and self-employed individuals are eligible, provided they earn at least 拢167 per week and less than 拢100,000 per year.
If parents are a couple, both must meet these criteria to qualify for the tax benefit. Single parents must also meet the same income requirements.
The support is available until a child turns 11, or 16 if they have a disability. Applications are made online: parents deposit money into a dedicated account, and the government adds an extra 20% on top of what they pay in.
The government is now reducing application processing times and introducing a simpler online system. Parents can track their balance and payments in real time, including both their own contributions and the government's top-up.
Another key focus is raising awareness. Many families still miss out on the benefit simply because they don't know they're eligible. To address this, the government has launched a new campaign encouraging parents to apply.
Free childcare hours for working parents
There's another important update in the UK's childcare policy. Since September 1st, 2025, the Free Childcare for Working Parents offer has doubled from 15 to 30 hours per week. Eligible parents can now benefit from 30 hours of state-funded childcare, from the time their child is 9 months old until they start school.
However, keep in mind that this initiative operates separately from the Tax-Free Childcare scheme, although parents can qualify for both. Applications for the free childcare offer are completed online.
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