More than 401,300 families benefitted from £44.4 million in government funding towards childcare costs in September 2022, HM Revenue and Customs (HMRC) has revealed.
Compared to September 2021, the latest Tax-Free Childcare statistics show the number of families who are using Tax-Free Childcare has increased by 85,475. But thousands of families are still missing out on the top-up which could save them up to £2,000 a year per child towards the cost of their childcare.
Tax-Free Childcare provides working families, earning up to £100,000 a year, with financial help towards childcare. For every £8 paid into a Tax-Free Childcare online account, families will automatically receive an additional £2 from the government. This means they can receive up to £500 every three months (£2,000 a year), or £1,000 (£4,000 a year) if their child is disabled.
The top up payments can be used to pay for any approved childcare for children aged 11 or under, or up to 17 if the child has a disability whether your child goes to nursery, a child minder, has term-time wraparound care or goes to a holiday club.
Families can check their eligibility and see the options for childcare support at Childcare Choices.
Myrtle Lloyd, HMRC's Director General for Customer Services, said:
We know childcare can be expensive so using Tax-Free Childcare can make a huge difference to household finances.
