Information for new reception parents about out-of-school childcare subsidy

10 Jun 2019

What is Tax Free Childcare and how is it relevant to my school?

Tax Free Childcare is a Government subsidy designed to help working parents with the cost of childcare – including breakfast clubs, after school clubs and holiday schemes. It is available to all families with children under 12 years old, or with disabled children under 17 years, if they meet the required work and income criteria.

How it works

To qualify, each parent must be working and must have a minimum weekly income level equivalent to 16 hours worked at the National Living Wage and a maximum annual salary of no more than £100k per year per parent.

Parents set up an online account where they can bank payments for childcare. For each £8 a parent pays in, the Government will add an additional £2 up to a maximum of £2,000 per year per child. Families of disabled children receive help with their childcare costs to a maximum of £4,000 per year.

If your school provides before or after school childcare, or holiday clubs, then you can register to receive Tax Free Childcare payments from parents. The Childcare Voucher scheme has now been closed to new participants so, over time, Tax Free Childcare will become the main childcare subsidy (along with the 30 hours payments).

When you meet with parents of children starting reception in September 2019, we would encourage you to make parents aware of the Tax Free Childcare. We have produced a simple leaflet (see download) which explains everything a parent needs to know to sign up for Tax Free Childcare.

In order to receive Tax Free Childcare payments from parents, your school will need to set up a childcare provider account. It is quick and easy to do and takes around 10 minutes. Please see the attached information sheet for details of how to sign up.

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Last updated: 11 Jun 2019

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