HM Revenue and Customs (HMRC) is encouraging parents to sign up for Tax-Free Childcare ahead of the summer holidays, as new figures show a record number of families are now using the support. The scheme, backed by the UK Government, can provide up to £2,000 per year per child towards approved childcare costs.
Record Uptake and Financial Support
Statistics reveal that 868,095 families benefited from Tax-Free Childcare during the 2025-26 tax year, while the UK Government provided almost £600 million in top-up payments through the scheme. For every £8 paid into an account, the Government adds £2. Eligible parents can receive up to £500 every three months for each child, worth up to £2,000 a year. Families with a disabled child can receive up to £1,000 every three months, worth up to £4,000 annually.
How the Scheme Works
The money can be used to pay for approved childcare providers, including nurseries, childminders, before and after-school clubs, and holiday activity clubs. Myrtle Lloyd, HMRC’s chief customer officer, said: “I’m so pleased these figures show more families than ever are using Tax-Free Childcare to save on their bills. £2,000 is not a small amount and it can make a real difference - especially with the childcare costs of the summer holidays approaching. If you haven’t signed up yet, don’t miss out.”
Eligibility Criteria
Families in Lanarkshire could be eligible if they have a child aged 11 or under. Support can continue until September 1 after a disabled child’s 16th birthday. To qualify, parents and their partner, if they have one, must each earn at least the equivalent of 16 hours a week at the National Minimum Wage or National Living Wage on average, and earn no more than £100,000 a year each. Families are advised they cannot usually claim Tax-Free Childcare if they receive Universal Credit or childcare vouchers.
How to Apply
Parents in Lanarkshire can use the online childcare calculator on GOV.UK to check what support they may be entitled to and whether they qualify for Tax-Free Childcare. More information about the scheme and how to apply is available through GOV.UK.
