- More than 570,000 families received an average of £100 towards their monthly childcare bills in June 2025.
- Working families encouraged to sign up to Tax-Free Childcare as Government top-ups totalled £57.7 million.
- Supporting the government’s mission to grow the economy and deliver on the Plan for Change.
Working families are encouraged to sign up to Tax-Free Childcare ahead of the spooky school holidays to avoid tricky childcare bills as latest figures from HM Revenue and Customs (HMRC) show 571,945 families got a savings treat in June.
Paying childcare bills through a Tax-Free Childcare account can save working families up to £2,000 per year for each of their children up to the age of 11 or £4,000 per year up to the age of 16 if the child is disabled.
Myrtle Lloyd, HMRC’s Chief Customer Officer, said
Hallowe’en doesn’t need to be a tricky time for childcare bills. Whether you’re working and have a child in a holiday club or taking time off and planning term-time care, paying your bills with Tax-Free Childcare can help. Go to GOV.UK to start saving today.
Once a Tax-Free Childcare account is open, for every £8 parents deposit in their child’s account, the government tops it up by £2. Parents can receive up to £500 (or £1,000 if their child is disabled) every 3 months towards their childcare costs.
In June, the government paid a total of £57.7 million in top-ups to Tax-Free Childcare accounts which means each family received, on average, more than £100 to be used towards their childcare bills.
Parents can use Tax-Free Childcare to help pay toward any approved childcare for their child – so that’s nursery for younger children or, for older children who are in school, wraparound childcare, after-school and holiday clubs.
Once families have opened a Tax-Free Childcare account, they can deposit money and use it straight away or keep it in the account to use it whenever it’s needed. Any unused money in the account can be withdrawn at any time.
Families could be eligible for Tax-Free Childcare if they
- have a child or children aged 11 or under. They stop being eligible on 1 September after their 11th birthday. If their child has a disability, they receive up to £4,000 a year until 1 September after their 16th birthday
- the parent and their partner (if they have one) earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average
- each earn no more than £100,000 per annum
- do not receive Universal Credit or childcare vouchers
Visit GOV.UK to check eligibility and register for Tax-Free Childcare.
Tax-Free Childcare can be used alongside the free childcare hours, subject to eligibility.
Further Information
Latest Tax-Free Childcare statistics with data available up until June 2025 were released 27 August 2025.
More information about Tax-Free Childcare and how to register.
Each eligible child requires their own Tax-Free Childcare account. If families have more than one eligible child, they will need to register an account for each child. The government top-up is then applied to deposits made for each child, not household.
Parents returning to work between now and 31 January 2026 can apply to open a Tax-Free Childcare account today and start saving straightaway rather than waiting until they are within 31 days of returning to work.
Account holders must confirm their details are up to date every 3 months to continue receiving the government top-up.
Childcare providers can also sign up for a childcare provider account via GOV.UK to receive payments from parents and carers via the scheme.