Parents who are eligible for the tax-free childcare scheme can open an online account, and for every £8 you pay in, the Government automatically adds in £2
Martin Lewis has warned how thousands of parents are missing out on up to £2,000 a year in free childcare. The help is issued through the Government tax-free childcare scheme.
Parents who are eligible can open an online account, and for every £8 you pay in, the Government automatically adds in £2. If you’re eligible, you can get up to £500 every three months for each of your children – so £2,000 over 12 months.
For disabled children, the maximum amount you could get rises to £4,000. The money must be spent on a registered childcare provider, such as nurseries, nannies, after school clubs and play schemes.
Martin Lewis flagged the tax-free childcare scheme on his latest Martin Lewis Money Show Live broadcast on ITV last week, where he explained how 800,000 parents are missing out.
He said: “It’s only for under 12s, or under 16s if the child has a disability. Do check whoever you’re paying would take tax-free childcare payments. Almost all of them do, but it’s worth checking.
“You must both be working, or if you’re a single parent, you must be working, and you need to earn the equivalent of 16 hours at national minimum wage – which depends on your age – but for someone aged over 22, is around £850 or more a month.
“But if one of the parents is earning over £100,000 a year, you’re not eligible. Your neighbours might be earning £99,000 each in a couple. They get it, you don’t. Ridiculous system.”
There are some circumstances where you can claim tax-free childcare if you’re not working. For example, if you’re on sick leave, annual leave, on shared parental, maternity, paternity or adoption leave, or if you’re in a couple and one of you is working, and the other claims certain benefits.
You can open a tax-free childcare account for free through the GOV.UK. But not everyone necessarily needs to pay for childcare in the first place. For example, parents can claim 15 or 30 hours free childcare a week, depending on the age of their child.
Working parents of nine-month-olds and two-year-olds can access 15 hours of free childcare a week and this will rise to 30 hours from September 2025. You must be in work and earning the equivalent of the national minimum wage or for 16 hours a week, but less than £100,000 a year.
Finally, if you claim Universal Credit and you’re in work, you can claim back up to 85% of childcare costs, up to a maximum of £1,031.88 for one child or £1,768.94 for two or more children.
Finally, if you claim Universal Credit and you’re in work, you can claim back up to 85% of childcare costs, up to a maximum of £1,031.88 for one child or £1,768.94 for two or more children.
