Martin Lewis is urging 800,000 working families across the country not to miss out on a tax-free childcare boost worth up to £2,000 each year. During a special post-Budget edition of The Martin Lewis Money Show Live, the consumer champion explained the tricky details of the newly announced changes to childcare in England only.
However, he also reminded STV viewers that Tax-Free Childcare is available from HM Revenue and Customs (HMRC) for parents and could help cover the costs of before and after-school clubs, childminders and nurseries, and other approved childcare schemes.
Martin highlighted how the scheme provides eligible working families with up to £2,000 every year, or £4,000 if their child is disabled. For every 80p deposited into a Tax-Free Childcare online account, families will receive an additional 20p in UK Government top-ups, and it is available for children aged up to 11, or 17 if the child has a disability.
Martin explained that there were no changes to the Tax-Free Childcare scheme announced in the Spring Budget but it is “massively under-claimed” and “800, 000 of you are entitled to this”.
He said: “For every 80p you put in, the state adds 20p up to a maximum of £2,000 per year.”
Parents can receive up to £500 every three months, the equivalent to £2,000 a year, or £1,000 (£4,000 a year) if their child is disabled.
Opening a Tax-Free Childcare account is simple and takes around 20 minutes. Money can be deposited at any time and can be used straight away, or whenever it is needed. Unused money in the account can be withdrawn at any time. Go to GOV.UK here to register and get started.
Eligibility for Tax-Free Childcare
Families could be eligible for Tax-Free Childcare if they:
- have a child or children aged 11 or under. They stop being eligible on 1 September after their 11th birthday. If their child has a disability, they may get up to £4,000 a year until 1 September after their 16th birthday
- earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average
- each earn no more than £100,000 per annum
- do not receive Tax Credits, Universal Credit or childcare vouchers
A full list of the eligibility criteria is available on GOV.UK here.
Families can learn more about the childcare offers available to them and what support they’re entitled to by visiting Childcare Choices here.
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