More than 600,000 families conjure up Hallowe’en savings with Tax-Free Childcare

More than 600,000 families cast a savings spell and cut their childcare costs with Tax-Free Childcare HM Revenue and Customs (HMRC) reveals, as it encourages others to sign up ahead of the spooky school holidays.

Tax-Free Childcare helps working families with their childcare costs by saving up to £2,000 per year for each of their children up to the age of 11 or £4,000 per year up to aged 16 if the child is disabled.

Latest figures show 601,620 families received a share of £55.7 million in government top-ups in June with each family getting an average of £93 added to their Tax-Free Childcare savings pot. For every £8 parents deposit in their child’s account, the government tops it up by £2.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said: 

Paying for childcare while you work doesn’t have to be a nightmare for your bank balance this Hallowe’en. Tax-Free Childcare can make a real difference. Go to GOV.UK to find out more today.

Signing up to Tax-Free Childcare today means families can save on whatever Hallowe’en half term childcare plans they need as well as those for the year ahead.

Parents can receive up to £500 (or £1,000 if their child is disabled) every 3 months towards their childcare costs. Savings can be used to pay for whatever approved childcare suits your family’s needs – nursery for younger children, before and after school clubs or activity clubs during the school holidays.

Once families have opened a Tax-Free Childcare account, they can deposit money and use it straight away or keep it in the account to use it whenever it’s needed. Any unused money can be withdrawn from the account at any time.   

Families could be eligible for Tax-Free Childcare if they: