- Tax-Free Childcare in one table
- What the 20% top up looks like on a real bill
- The 3-monthly check that keeps the money coming
- Who can get Tax-Free Childcare
- What you can spend the account on
- How to apply and pay your provider
- Other childcare help GOV.UK lists alongside it
- My advice on Tax-Free Childcare
- Frequently asked questions
Tax-Free Childcare is a government scheme where you pay into an online childcare account and the government tops it up by 2 pounds for every 8 pounds you put in. GOV.UK says you can get up to 500 pounds every 3 months per child (up to 2,000 pounds a year), or 1,000 pounds every 3 months (up to 4,000 pounds a year) if your child is disabled.
Childcare is one of the biggest monthly bills a working parent has, and this scheme is one of the simplest ways to take a slice off it. It's also easy to lose if you miss one small admin step. Everything below comes from GOV.UK's Tax-Free Childcare guide, with the amounts as GOV.UK shows them as of Nov 2026.
Tax-Free Childcare in one table
| Question | What GOV.UK says |
|---|---|
| How it works | You pay into a childcare account, the government adds money, and you pay your provider from it |
| The top up | 2 pounds for every 8 pounds you pay in |
| Limit per child | 500 pounds every 3 months, up to 2,000 pounds a year |
| Limit for a disabled child | 1,000 pounds every 3 months, up to 4,000 pounds a year |
| Child's age | 11 or younger, or 16 or younger if disabled |
| Your situation | You'll usually need to be working, or returning to work |
| Your provider | Must be signed up to the scheme and be an approved childcare provider |
| Keeping it going | Sign in every 3 months to confirm you're still eligible |
What the 20% top up looks like on a real bill
GOV.UK gives a worked example that makes the maths simple. Your childcare bill is 250 pounds. You pay 200 pounds into your childcare account, which is 80% of the bill. The government adds 50 pounds, which is 20% of the bill. You then use the full 250 pounds to pay your childcare provider.
Put another way, the government covers 20% of what you pay your provider through the account, up to the limits per child. That's why it's worth running every eligible bill through the account rather than paying the nursery or childminder directly from your bank.
The 3-monthly check that keeps the money coming
This is the rule that trips people up. GOV.UK says you must sign in to your childcare account every 3 months to confirm you're still eligible, and if you don't, your Tax-Free Childcare will stop. The same applies if you get Free Childcare for Working Parents: you confirm your details are up to date every 3 months.
GOV.UK's step-by-step childcare guide says you can sign in to your childcare account to find out when you next have to check your details. Put that date in your calendar the day you sign up, because a missed reconfirmation means a missed top up.
Who can get Tax-Free Childcare
GOV.UK says you'll usually need to be working, or returning to work, and your child must be 11 or younger, or 16 or younger if they're disabled. Your childcare provider must also be signed up to the Tax-Free Childcare scheme, and GOV.UK says to check with your provider that they're already signed up before you apply.
If you get Universal Credit or childcare vouchers, GOV.UK has a separate section on how that affects you. Read it before you apply, because the schemes interact. GOV.UK also notes that you can only get childcare vouchers if you've already joined a scheme.
What you can spend the account on
GOV.UK says you can use Tax-Free Childcare to pay for childminders, nurseries and nannies, and for after school clubs, breakfast clubs and holiday clubs. You can also use it for extras such as nappies, meals and trips, where those are supplied by your childcare provider.
The provider has to be 'approved childcare'. GOV.UK says that means one of these:
- a registered childminder, nanny, playscheme, nursery or club
- a childminder or nanny with a registered childminder agency or childcare agency
- a registered school
- a home care worker working for a registered home care agency
If your child is disabled, GOV.UK says you can use the extra money to pay for more hours of childcare, or to help your provider get specialist equipment for your child, such as mobility aids. And if your provider is based in a European Economic Area (EEA) country, you may be able to use the scheme, but GOV.UK says to contact HM Revenue and Customs (HMRC) to check.
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How to apply and pay your provider
- Check with your childcare provider that they're signed up to Tax-Free Childcare and that they count as approved childcare.
- Check you're eligible using GOV.UK's eligibility section, including the separate section if you get Universal Credit or childcare vouchers.
- Apply for Tax-Free Childcare on GOV.UK and set up your childcare account.
- Pay money into the account by Direct Debit, standing order or bank transfer. GOV.UK says your payment usually appears within one working day, and the government's payment is added at the same time.
- Pay your childcare provider from the account.
- Sign in every 3 months to confirm you're still eligible, or the scheme stops.
Other childcare help GOV.UK lists alongside it
Tax-Free Childcare sits inside GOV.UK's 'Get childcare: step by step' guide, which also lists 15 hours free childcare (Early Learning for 2 year olds), 15 hours free childcare for 3 to 4 year olds, Free Childcare for Working Parents, and Universal Credit help while you study. GOV.UK says you could get free childcare when your child is aged 9 months to 4 years, and that you might be able to use Tax-Free Childcare for wraparound care, after school clubs or other activities once your child reaches school age.
If you're self-employed, these tax tips for the self-employed and this guide to getting a mortgage when you're self-employed are worth reading next, and these passive income ideas for the UK can help with the household budget.
My advice on Tax-Free Childcare
If you're working and paying for approved childcare for a child of 11 or younger, sign up through GOV.UK, check first that your provider is registered with the scheme, and pay every eligible bill through the account so you collect the full 20% top up. Then set a reminder for the 3-monthly sign in, because that's the step that quietly ends the payments.
Frequently asked questions
How much does the government add with Tax-Free Childcare?
GOV.UK says the government adds 2 pounds for every 8 pounds you pay in, up to 500 pounds every 3 months per child, or 1,000 pounds every 3 months if your child is disabled. Those are the limits GOV.UK shows as of Nov 2026.
What's the yearly limit for Tax-Free Childcare?
Up to 2,000 pounds a year per child, or up to 4,000 pounds a year if your child is disabled, according to GOV.UK.
What age does Tax-Free Childcare stop?
Your child must be 11 or younger, or 16 or younger if they're disabled.
Can I use Tax-Free Childcare for holiday clubs?
Yes. GOV.UK lists after school clubs, breakfast clubs and holiday clubs, as long as the provider is approved childcare and signed up to the scheme.
What happens if I don't reconfirm my details?
GOV.UK says you must sign in every 3 months to confirm you're still eligible, and if you don't, your Tax-Free Childcare will stop.
How quickly does money reach the childcare account?
GOV.UK says your payment will usually appear within one working day, and the government's top up is added at the same time.
