With the cost-of-living crisis continuing to impact households, those eligible are being urged to take advantage of Tax-Free Childcare help from the government.
HMRC data shows that more than 401,300 families benefitted from £44.4 million in government funding towards childcare costs in September 2022.
This figure has increased by 85,475 compared to September 2021. However, thousands of families are still missing out on the top-up which could potentially save them up to £2,000 a year per child towards the cost of their childcare.
If eligible, Tax-Free Childcare is for parents or carers with children aged up to 11, or 17 if their child is disabled; and for every £8 deposited into an account, the government will top this up with £2 up to the value of £500 every three months, or £1,000 if their child is disabled.
The money in the Tax-Free Childcare account can be put towards:
- After school clubs
- Approved play schemes
Myrtle Lloyd, HMRC’s Director General for Customer Services, said, “We know childcare can be expensive so using Tax-Free Childcare can make a huge difference to household finances.
“To find out more, search ‘Tax-Free Childcare’ on GOV.UK.”
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