Money you might be missingFamily & life stages
Tax-Free Childcare: up to £2,000 a year per child, and it covers holiday and after-school clubs
About 600,000 families used the government's childcare top-up in June. Many more working parents of children up to 11 could qualify, including for school-holiday and after-school clubs.
Published 1 November 2026Last checked 1 November 2026UK-wideFrom HM Revenue and Customs
Illustration generated with AI
What's happening
Tax-Free Childcare is a government top-up for working parents. For every £8 you pay into an online childcare account, the government adds £2, up to £500 every three months for each child (£1,000 if the child is disabled). It can pay for nurseries and childminders, and also for after-school, breakfast and holiday clubs for children up to 11.
The question: Who can get Tax-Free Childcare, how much is it worth, and how do you claim it?
This applies to you if…
- You have a child aged 11 or under (the support runs until the September after they turn 11, or 16 if they are disabled)
- You, and your partner if you have one, expect to earn at least £2,643.68 each over the next 3 months if aged 21 or over (about £203 a week, 16 hours at the National Living Wage)
- Neither of you expects adjusted net income over £100,000 this tax year
- Your childcare provider is approved and signed up to Tax-Free Childcare
- You live in England, Scotland, Wales or Northern Ireland
Not for you if…
- You or your partner get Universal Credit (you cannot get both at once)
- You get childcare vouchers through work and want to keep them
- You foster the child, or the child does not usually live with you
- Either of you expects adjusted net income over £100,000
What it's worth
The government adds 25p for every £1 you pay in (£2 for every £8). Limits are per child, not per family.
Tax year 2026 to 2027
What a £250 childcare bill costs you
- Your childcare bill is £250.
- You pay £200 into your childcare account.
- The government adds £50 (£2 for every £8).
- You pay the provider £250 from the account.
The bill costs you £200 instead of £250.
This is GOV.UK's own example.
How to do it
- 1
Use the eligibility page, and the childcare calculator if you get Universal Credit or vouchers and need to compare.
Takes about 5 minutes
- 2
You need your National Insurance number. Add your partner if you are married, in a civil partnership or living together. In England, the same form also checks you for the free childcare hours for working parents.
Takes about About 20 minutes
- 3
Wait for a decision
Usually straight away, or within 10 days if HMRC needs extra checks.
- 4
Pay in by Direct Debit, standing order or bank transfer. The top-up is added and you pay the provider from the account. Your provider must be signed up.
- 5
Sign in and confirm your details are still right. If you miss it, the top-up stops.
Takes about A few minutes
Deadline
No closing date. Reconfirm every 3 months
The earnings figures here are for the 2026 to 2027 tax year, which ends on 5 April 2027.
The catches
You cannot have it alongside Universal Credit
GOV.UK says you cannot get Tax-Free Childcare while claiming Universal Credit. Universal Credit has its own childcare help. If you are thinking of switching, wait for the Tax-Free Childcare decision before you cancel Universal Credit. GOV.UK points to its childcare calculator to compare.
Childcare vouchers rule it out too
If you get vouchers through work, you must tell your employer within 90 days of applying for Tax-Free Childcare, and the vouchers stop.
Miss a reconfirmation and the top-up stops
Every 3 months you must sign in and confirm your details. Setting a phone reminder helps.
Taking money out loses the top-up
You can withdraw money you paid in, but the matching government top-up goes back to HMRC. You cannot withdraw while a top-up is still due.
The £100,000 limit is per person
If either parent expects adjusted net income over £100,000, the family cannot use it for that tax year. Pension contributions can lower adjusted net income, which some families take into account.
Illustrative example
Two working parents and an after-school club
Sam and Priya both work full time. Their daughter is 8 and goes to an after-school club and a holiday club. Together these cost £1,600 a year.
- They pay £1,280 into her childcare account over the year.
- The government adds £320 (£2 for every £8).
- They pay the clubs the full £1,600 from the account.
They save £320 a year. With two children at the same clubs, each child has their own account and their own limit.
Illustrative calc using the £2 for every £8 rule. Real costs vary.
What this means for…
- Children under 5: Can pay for nursery or childminder costs on top of any free hours you get.
- Children 5–17: Can pay for approved after-school, breakfast and holiday clubs until the September after your child turns 11 (16 if disabled).
- Self-employed: If your business started less than 12 months ago, the minimum earnings rule doesn't apply. Irregular earnings can be averaged over the tax year.
- Employed (PAYE): Each working parent must expect to earn at least £2,643.68 over the next 3 months if aged 21 or over.
Common misreadings
You might hear: It is only for nursery fees for under-5s.
Actually: It runs until the September after your child turns 11 (16 if disabled). It can pay for approved after-school and breakfast clubs, holiday playschemes, registered childminders and some nannies.
You might hear: You lose your money if you don't spend it.
Actually: You can take out what you paid in. Only the government top-up goes back.
You might hear: It is means-tested on household income.
Actually: Each parent must earn at least a minimum amount, and each must expect adjusted net income of £100,000 or less. Incomes are not added together.
You might hear: You have to choose between this and free childcare hours.
Actually: HMRC says you can use Tax-Free Childcare alongside the free hours, if you qualify for both.
Where the UK nations differ
- England
- One application also checks you for the free childcare hours for working parents.
- Scotland
- Tax-Free Childcare works the same way. A non-working partner who gets Carer Support Payment can still count as eligible. Funded early learning hours are run separately by the Scottish Government.
- Wales
- Tax-Free Childcare works the same way. Funded childcare hours are run separately by the Welsh Government.
- Northern Ireland
- Tax-Free Childcare works the same way. Rules on paying a relative as your carer are different: they must be in a Northern Ireland childcare approval scheme and also look after at least one unrelated child.
What you could do
work, have a child aged 11 or under and pay for approved childcare or clubs
Check eligibility and apply online. It usually takes about 20 minutes.
get Universal Credit and pay for childcare
already have an account
Set a reminder to reconfirm your details every 3 months so the top-up doesn't stop.
Timeline
30 June 2026
602,000 families used it
Government top-ups of £55.7 million in June 2026, an average of £93 per family.
13 October 2026
HMRC reminder
HMRC urged families to use it for half-term and holiday clubs.
The detail
The rules
- Top-up: £2 for every £8 paid in, up to £500 per child every 3 months (£1,000 if disabled).
- Age: until the September after the child turns 11, or 16 if the child is disabled.
- Minimum expected earnings over the next 3 months in 2026 to 2027: £2,643.68 (21 and over), £2,256.80 (18 to 20), £1,664 (under 18 or apprentice).
- Dividends, interest, property and pension income don't count towards the minimum earnings.
- You can usually still qualify on sick leave, annual leave, or maternity, paternity, shared parental, adoption or neonatal leave.
- A non-working partner can still qualify if they get Carer's Allowance (or Carer Support Payment in Scotland), Incapacity Benefit, Severe Disablement Allowance, contribution-based ESA or National Insurance credits.
- You and your partner cannot both have accounts for the same child.
References
- HMRC Tax-Free Childcare technical manual TFC30800: Withdrawals: the government top-up is returned to HMRC.
Words explained
- Childcare account
- The online account you pay into. The government adds its top-up there.
- Approved childcare
- Childcare registered with the right body, such as Ofsted in England. It must also sign up to Tax-Free Childcare.
- Adjusted net income
- Your total taxable income minus certain things like pension contributions and Gift Aid.
- Reconfirm
- Signing in every 3 months to say your details haven't changed.
- National Living Wage
- The legal minimum hourly pay for workers aged 21 and over. It is £12.71 an hour from April 2026.
In short
If you work and pay for childcare or clubs for a child aged 11 or under, the government adds £2 for every £8 you pay in, up to £2,000 a year per child. You can't have it with Universal Credit, and you must reconfirm every 3 months.
Related dates
- 1 Apr National Living Wage rises to £13.21Change · in 151 days
Sources
- Tax-Free Childcare, GOV.UK (2026-11-01)
- Check if you're eligible for Tax-Free Childcare, GOV.UK (2026-11-01)
- Tax-Free Childcare, Universal Credit and childcare vouchers, GOV.UK (2026-11-01)
- Apply for Tax-Free Childcare, GOV.UK (2026-11-01)
- Confirm your details, GOV.UK (2026-11-01)
- More than 600,000 families conjure up Hallowe'en savings with Tax-Free Childcare, HMRC (2026-10-13)
- Tax-Free Childcare statistics commentary: June 2026, HMRC (2026-08-26)
- TFC30800: withdrawals, HMRC internal manual
- Help with childcare costs: approved childcare, GOV.UK
- National Minimum Wage and National Living Wage rates, GOV.UK
This is guidance, not regulated financial advice. Check figures against the linked official source before you act. Written with AI assistance and checked against primary sources. How Kitty works. For free, impartial help, try MoneyHelper or Citizens Advice.