14/03/2024

Working Families Urged To Explore Childcare Savings Ahead Of Holidays

HM Revenue and Customs (HMRC) has called on working families who have yet to sign up for Tax-Free Childcare to find out how they could save money on their childcare costs in time for the school holidays.

With the Easter break just weeks away, families yet to sign up for Tax-Free Childcare could be missing out on annual savings of up to £2,000 per child, or £4,000 if their child is disabled.

Tax-Free Childcare can help pay for approved childcare for children aged 11 or under, or up to 16 if the child has a disability. Parents can receive up to £500 (or £1,000 if their child is disabled) every 3 months, which means for every £8 paid into their online account, they will automatically receive an additional £2 top up from the government.

It takes just 20 minutes to apply online for a Tax-Free Childcare account and can be used to help pay for a child's nursery, childminder, breakfast or after school club or holiday activity club. It can also be used alongside the 15 or 30 hours free childcare offer and to help pay for any specialist equipment needed for a disabled child when they're attending childcare.

Myrtle Lloyd, HMRC's Director General for Customer Services, said: "Springtime is a good opportunity to take a fresh look at family finances. A quick check online and you can find out how Tax-Free Childcare can help cut the cost of your childcare bills. Every bit of financial support helps – I would urge families to 'hop to it' and search 'Tax-Free Childcare' on GOV.UK to find out how you could be better off and open your account today."

Once an account is opened, parents can deposit money immediately, so it is ready to be used whenever it is needed; and unused money in the account can be withdrawn at any time.

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.

Eligible working parents of 2-year-olds can now register to access 15 hours free childcare per week from April 2024, the first step in the rollout of the largest investment in childcare in England's history.

The offer will expand to 30 free hours of childcare for working parents from nine months old up to when their child starts school by September 2025, and is set to save parents using the full 30 hours up to £6,900 per year.

Families can learn more about the childcare offers available to them and what could fit their family by visiting Childcare Choices.

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

Related Irish News Stories
Click here for the latest headlines.

12 March 2019
National Scheme Launched To Help Fund Cost Of Childcare
The Minister for Children and Youth Affairs, Dr Katherine Zappone, has today, 12 March, announced the launch of the National Childcare Scheme, the pathway to quality, accessible, and affordable care. Under the initiative, families will be supported to meet the cost of quality childcare through a system of universal and income-related subsidies.
04 April 2014
Funding Announced For Childcare Capital Programme
Frances Fitzgerald TD, Minister for Children & Youth Affairs, has today announced the launch of capital funding totalling €3m for community childcare services, parent and toddler groups and childminders.
02 July 2019
Minister Welcomes Progress Of National Childcare Scheme
The government will hear that many of the major elements of the new National Childcare Scheme are now in place in preparation for the Scheme's opening in October 2019.
27 September 2019
Report On Childcare Costs Published
New data on the cost of early learning and care and school-age childcare to families in Ireland has been published by the Minister for Children and Youth Affairs, Dr Katherine Zappone.
12 February 2014
Fianna Fáil Bring Childcare Motion To Dáil
A motion that aims to drive down the cost of childcare and introduce a new tax break for working families will be brought in front of the Dáil on Wednesday night. Fianna Fáil will table the motion, which calls on the government to increase the accessibility and affordability of childcare.