As the Hallowe’en holidays creep closer, more than half a million families are keeping childcare costs from becoming truly frightening — thanks to the Tax-Free Childcare scheme.
According to the latest figures from HM Revenue and Customs (HMRC), over 570,000 families received an average of £100 in government top-ups toward their childcare bills in June 2025, amounting to a total of £57.7 million in support.
Save up to £2,000 a year — or more if your child is disabled
Tax-Free Childcare helps working families cut the cost of childcare all year round — whether that’s during term time or the school holidays. By paying for childcare through a Tax-Free Childcare account, parents can save up to:
- £2,000 a year per child (aged up to 11)
- £4,000 a year if their child is disabled (aged up to 16)
“Don’t let childcare bills be a fright”
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".
For every £8 a parent pays into their Tax-Free Childcare account, the government adds £2. That means families can receive up to £500 every three months — or £1,000 if their child is disabled — towards childcare costs.
How it works
Parents can use Tax-Free Childcare to pay for any approved childcare, including:
- Nurseries and childminders
- After-school or holiday clubs
- Wraparound care for school-age children
Money can be deposited, used straight away, or saved for later. Anything unused can also be withdrawn at any time.
Who can apply?
Families could be eligible if they:
- Have a child aged 11 or under (or 16 if disabled)
- Each earn at least the National Minimum Wage or Living Wage for 16 hours a week
- Each earn no more than £100,000 per year
- Do not receive Universal Credit or childcare vouchers
Each eligible child needs their own Tax-Free Childcare account, and the government top-up applies per child — not per household.
Get started
You can check your eligibility and open an account now on www.gov.uk.
If you’re returning to work between now and 31 January 2026, you can even set up your account today — no need to wait until you’re back at work.
Parents need to reconfirm their details every three months to keep receiving the top-up, and childcare providers can also sign up on GOV.UK to receive payments directly from families. Photo by Jarek Tuszyński, Wikimedia commons.