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Reading: 15,285 families in Wales saved on childcare costs with Tax-Free Childcare
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Wrexham Council News > Blog > People & place > 15,285 families in Wales saved on childcare costs with Tax-Free Childcare
People & place

15,285 families in Wales saved on childcare costs with Tax-Free Childcare

Last updated: 2023/05/30 at 3:09 PM
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Guest article: HMRC

More than 15,000 families in Wales saved on childcare costs in December thanks to Tax-Free Childcare and HM Revenue and Customs (HMRC) is urging those yet to sign up not to miss out.

The latest figures revealed by HMRC show an increase of 3,595 families in Wales using the scheme compared to December 2021.

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Tax-Free Childcare is a financial support for working families with children up to the age of 11, or 16 if their child has a disability. The government top up can be used to pay for any approved childcare including holiday clubs, breakfast and after school clubs, child minders and nurseries.

A total of £41.5 million in government top-up payments were made to working families across the UK in December 2022 with each family saving up to £2,000 a year per child or £4,000 if their child is disabled.

Families who have not yet signed up should check their eligibility and apply online today.

Opening a Tax-Free Childcare account is quick and easy and can be done at any time of the year.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said, “We want to help families get the most out of their finances and Tax-Free Childcare can help pay towards their childcare costs. Search ‘Tax-Free Childcare’ on GOV.UK to get started.”

For every £8 paid into the Tax-Free Childcare account, families automatically receive an additional £2. Families can save up to £500 every three months (£2,000 a year) for each child or £1,000 (£4,000 a year) if their child is disabled.

More than one million families in the UK are entitled to some form of government childcare support and the government is encouraging those eligible not to miss out on their entitlements.  Families can find out more about Tax-Free Childcare via the Childcare Choices website.

The government is offering help for households. Check GOV.UK to find out what cost of living support, including help with childcare costs.

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