More than 23,700 families in Wales cut their childcare costs with Tax-Free Childcare
Tax-Free Childcare, a scheme backed by the UK Government, has provided financial relief to 23,765 families in Wales during the 2022 to 2023 tax year, as reported by HM Revenue and Customs (HMRC). This figure shows a significant increase, nearly 6,000 more families benefitted compared to the previous year.
According to the latest statistics released by HMRC on 24 May 2023, an impressive £533 million was shared by families across the UK, easing the financial burden of their childcare bills.
Working families, with children up to 11 years of age, or 16 if the child has a disability, can save up to £2,000 per year per child, or £4,000 a year if their child is disabled.
For every £8 deposited into a Tax-Free Childcare account, families receive an additional government top-up of £2. Families can save up to £500 every three months for each child, or £1,000 if their child is disabled.
This scheme exemplifies the UK Government’s commitment to reducing the cost of living for individuals nationwide, simultaneously aiming to halve inflation this year, currently adding strain to household budgets.
Victoria Atkins, the Financial Secretary to the Treasury, said, “Tax-Free Childcare is making a real difference to childcare bills. Still, many families are missing out on the help they’re entitled to.
Parents should check their eligibility and apply online; the top-up could make a significant difference at a time they need it most.”
Myrtle Lloyd, HMRC’s Director General for Customer Services, also emphasised the benefit’s flexibility, stating, “Tax-Free Childcare allows families to save towards the cost of childcare throughout the year and use it when they need it. It can be a real boost to the household budget of working families.”
With over one million families possibly eligible for the scheme, HMRC urges families to verify their eligibility and sign up to start saving today. The process of opening a Tax-Free Childcare account is straightforward, can be done online in about 20 minutes, and money can be deposited anytime throughout the year.
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