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Tax-Free Childcare

A new government scheme that is designed to help working parents with the cost of the childcare launched in April of 2017 and is being rolled out to parents, starting with the parents who have the youngest children first.

The government will pay in an extra £2 for every £8 a parent pays in. Per year parents can receive up to £2000 per child, this will go towards their childcare costs. For disabled children a higher limit of £4000 and £20000.

To qualify for this parents and partners in the household must generally meet a minimum income on average of £120 a week but also each earning less than £100000 a year.

This scheme will be available for children up to the age of 12 and for disabled children up to 17. All eligible parents will be able to join this scheme by the end of 2017. The parents that are eligible will be able to apply for all of their children at once. Parents will need to open an online account, where they will be able to pay for childcare from a registered provider.

For employers who are currently offering Employer Supported Childcare can remain open to new entrants until April 2018. Existing members can either change over to Tax-Free Childcare or remain on Employer Supported Childcare, but you can not benefit from both at the same time.