HMRC urges parents to sign up for Tax-Free Childcare scheme
More than 20,700 working families in Wales received help with childcare bills through the UK Government’s Tax-Free Childcare scheme in June, saving an average of £100 each that month.
HM Revenue and Customs (HMRC) said government top-ups across the UK totalled £57.7 million in June 2025, supporting parents ahead of the school holidays.
Families can open a Tax-Free Childcare account to receive up to £2,000 a year per child under 12, or up to £4,000 per year for children with disabilities.
For every £8 parents deposit into their account, the government contributes an extra £2. The money can be used to pay for approved childcare, including nurseries, after-school care, and holiday clubs.
HMRC is encouraging more families to sign up ahead of the half-term break. 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.”
Parents can open an account online and use it immediately, or save funds for future childcare needs. Any unused balance can be withdrawn at any time.
To qualify, parents must each earn at least the National Minimum or Living Wage for 16 hours a week on average, and less than £100,000 a year. Families receiving Universal Credit or childcare vouchers are not eligible.
Tax-Free Childcare can also be used alongside free childcare hours, subject to eligibility.
For more information and to register, visit GOV.UK.
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