Many parents don’t realise they can save up to £2,000 a year for each child on childcare costs through the Government's Tax-Free Childcare scheme. If your child is starting primary school this September, now is the time to set up your account and start saving. The government pays in £2 for every £8 you put into the account, meaning you can receive up to £500 every three months to help cover childcare costs. If your child has a disability, this figure increases to £1,000 every three months – or £4,000 a year.

Tax-Free Childcare can be used for many types of approved care, such as after-school clubs, play schemes, childminders, or wraparound care. It gives flexibility for working parents who need help with care before or after school hours. Once you open the account on GOV.UK, you can deposit money and use it immediately or save it for later. Any money you don’t use can also be withdrawn without penalty.

Darren Jones, Chief Secretary to the Treasury says, "Through our Plan for Change, we are putting more money into the pockets of working people, worth up to £2,000 per year through Tax-Free Childcare. This will make it easier for parents to get back into work as we go further and faster to grow the economy."

To qualify, you and your partner (if you have one) must each earn at least the National Minimum Wage for 16 hours a week on average and not more than £100,000 per year. You cannot use the scheme if you receive Universal Credit or childcare vouchers. Your child must be under 12, or under 17 if they have a disability. As of the latest government statistics, tens of thousands of families across the UK are already benefiting from this support.

This scheme is part of the government’s wider plan to support working families and help more parents return to the workforce. With school starting soon, parents are encouraged to check their eligibility and register as soon as possible to begin saving. For more details and to apply, visit GOV.UK here