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HMRC Urges Parents to Check Tax-Free Childcare Eligibility
Eligible families can receive up to £2,000 per child each year, and HMRC says 868,095 families already use the scheme.
On Friday, HM Revenue and Customs urged parents to verify eligibility for Tax-Free Childcare before summer holidays arrive, urging families to manage mounting childcare expenses.
Once an account opens, the Government adds £2 for every £8 deposited by parents, allowing working families to save up to £4,000 annually for disabled children.
Recent statistics reveal a record 868,095 families accessed the scheme last year, as the Government provided nearly £600 million in top-up payments during 2025-26.
Myrtle Lloyd, HMRC's Chief Customer Officer, said, "£2,000 is not a small amount and it can make a real difference- especially with the childcare costs of the summer holidays approaching."
To qualify, parents must earn at least the National Minimum Wage for 16 hours weekly and not receive Universal Credit; applications open on GOV.UK.