More than 190,000 parents have successfully applied and now have a Tax-Free Childcare account they can use to pay for a wide range of regulated childcare, including nurseries, childminders, after school or holiday clubs.
For every £8 parents pay into their childcare account the government will add an extra £2. Once eligible parents have opened their new account they can start paying their childcare provider straightaway, using the government contribution.
Nicole, a mum of twins from Greater London, who uses Tax-Free Childcare, said:
“I was concerned about the cost of childcare, because I don't get any other support, and I'm a single mum with 15-month-old twins. Tax-Free Childcare has taken a big burden off my shoulders. It's massively helped me: the extra money makes a huge difference, and I find the system really easy to use. It allows me to comfortably work full time, knowing that my children are being well looked after.”
Tax-Free Childcare will cut thousands of pounds from childcare bills and is good news for working parents.
“More parents will be able to work if they want to and this demonstrates our commitment to helping families with the cost of living.
“All eligible parents with children under 12 can now apply through Childcare Choices and should take advantage of the available support.”
Tax-Free Childcare builds on the support already available to thousands of families including:
· enhanced childcare support through Universal Credit
· 30 hours free childcare
- tax credits for childcare