Tax-Free Childcare is here to save the day (and your wallet)! For every £8 you place into your childcare spends, the government adds £2 – think of it as a little thank-you for juggling work, life, and the million snacks your kids demand. You can get up to £2,000 a year per child.
So How Much Does This Actually Benefit You?
This 20% boost is especially beneficial for parents managing high childcare costs, allowing you to stay in work or increase your working hours without the financial burden of expensive childcare.
TFC can be used for various childcare services, including holiday camps, nurseries, childminders, and after-school clubs, giving you flexibility in choosing the right childcare option for your needs.
Additionally, parents with disabled children can receive up to £4,000 annually under the scheme. It’s open to most working parents, including single parents, as long as they meet the eligibility criteria related to income and employment status.
*Importantly, TFC is not limited to low-income families, making it accessible to a broad range of working parents.
Step-by-Step Guide to Check If You Qualify for TFC as a Single Parent:
- Check Your Work Status: Ensure you are employed, self-employed, or on maternity/paternity leave. You need to be working at least 16 hours a week and earning the National Minimum Wage or more.
- Income Criteria: Your income must be less than £100,000 per year. Both you and your partner (if applicable) must meet this requirement.
- Child’s Age: The child must be under 12 years old (or under 17 if disabled).
- Set Up an Account: Visit the government’s Childcare Choices website and create a Tax-Free Childcare account.
- Verify Eligibility: During the setup process, you’ll be asked about your employment status, income, and your child’s age. This will determine if you’re eligible for the 20% government top-up.
- Start Depositing Funds: Once approved, for every £8 you deposit, the government will contribute an additional £2, up to £2,000 per year per child.
We Also Accept Childcare Vouchers!
If you’d like to use childcare vouchers, it’s simple! Just check with your employer to see which voucher provider they’re registered with.
You can see the full list of voucher companies we’re already set up with here: Payment Options.
If you don’t see your provider on the list, no worries! Just drop us a quick message at info@schoolofplay.org.uk, and we’ll get an account set up for you.
Summary of Benefits
- Increased Work Participation: TFC reduces childcare costs, encouraging more parents, especially mothers, to remain in the workforce. On average, families spend £242 weekly on full-time childcare, and TFC helps offset this cost.
- Broader Eligibility: About 1.3 million families are eligible for TFC, which supports both employed and self-employed parents earning at least the National Minimum Wage for 16 hours a week.
- Improved Affordability of Childcare: With the cost of full-time childcare for children under two averaging £13,644 annually, TFC reduces parents’ financial burden by contributing £2 for every £8 spent.
