Accessibility Options Printer friendly Email us Contact us

Tax-Free Childcare, 18/03/14 [E/NI/S/W]

The UK Government has published its response to the August 2013 consultation on tax-free childcare.

The Economic Secretary to the Treasury, Nicky Morgan, said:

"Tax-free childcare is designed to provide support directly to working parents for their childcare costs. The Government will pay 20p for every 80p working parents pay towards their childcare costs up to a maximum of £10,000 per year.

“Delivering Tax-Free Childcare” announces that all working families with children under 12 will be able to access the scheme within the first year of its opening, as opposed to a gradual expansion over a seven-year period.

“Delivering Tax-Free Childcare” also announces an increase in the cost cap from £6,000 a year to £10,000 per year, which will mean the Government contribution could be worth up to £2,000 per child each year. This means that around 100,000 parents with higher childcare costs can benefit from greater support.

Delivered by HM Revenue and Customs (HMRC) with its delivery partner National Savings & Investments (NS&I), the scheme will be will be simple, flexible and straightforward for parents and childcare providers; parents’ money will be secure; and they will face no fees or charges".

For full details see the UK Government website.

Further Information

House of Commons Hansard 18 March 2014

Delivering Tax-Free Childcare: the Government’s response to the consultation on design and operation
Tax-Free Childcare: 10 things parents should know