Government Childcare Account: How to Set Up and Use It

What is the government childcare account?

The government childcare account (officially called the “childcare service account”) is a free online account provided by HMRC. It’s the single place where you manage:

• Tax-Free Childcare — pay in money and get a 20% government top-up
• Free childcare hours — apply for and manage your 15 or 30 hours entitlement
• Payments to providers — pay your nursery, childminder, or nanny directly

Think of it as a digital wallet for childcare. You deposit money, the government adds 20%, and you use the balance to pay registered childcare providers.

Who needs a childcare account?

You need a childcare account if you want to:

• Claim Tax-Free Childcare (the 20% government top-up)
• Apply for 30 hours free childcare for 3-4 year olds
• Apply for free childcare hours for children aged 9 months to 4 years (working parents)
• Use any government-funded childcare entitlement in England

Even if you only want the free hours (not Tax-Free Childcare), you’ll still need to set up a childcare account to get your eligibility code.

Scotland: Free childcare hours in Scotland are managed through your local council, not the government childcare account. The account is for England only.

How to set up your account

What you’ll need

Before you start, gather:

• Your National Insurance number
• A valid UK passport or driving licence (for identity verification)
• Your employer’s details (name, address, PAYE reference) or self-employment details
• Your partner’s details (if applicable)

Step-by-step setup

1. Go to gov.uk/childcare-account
2. Create a Government Gateway account (or sign in if you already have one)
3. Verify your identity — this usually involves answering questions about your finances that only you would know
4. Enter your employment details — HMRC checks these automatically
5. Add your child’s details — date of birth, any disabilities
6. Choose your entitlements — Tax-Free Childcare, free hours, or both
7. Add your childcare provider — you’ll need their Ofsted registration number

The whole process takes about 20 minutes. HMRC usually confirms eligibility within a few days, though it can occasionally take up to a week if they need to verify your employment manually.

How the childcare account works

Adding money

You pay into your childcare account by:

• Bank transfer — set up a standing order or make one-off payments
• Debit card — instant deposit

The minimum deposit is £1. There’s no maximum per deposit, but the government top-up is capped at £500 per quarter (£2,000 per year) per child.

Getting the government top-up

For every £8 you deposit, the government adds £2 automatically. This happens within a few hours of each deposit.

Example: You deposit £400 per month. The government adds £100, giving you £500 per month to spend on childcare. Over a year, that’s £1,200 in free money from the government.

Paying your provider

From your childcare account, you can pay any registered provider directly:

1. Go to your account and select “Pay your provider”
2. Enter the amount
3. The payment goes directly to your provider’s bank account

Payments usually reach your provider within 2-3 working days.

Managing free childcare hours

Your childcare account is also where you apply for and manage free childcare hours.

Getting your eligibility code

When HMRC confirms you’re eligible for free hours, you’ll receive an eligibility code in your childcare account. Give this code to your nursery or childcare provider so they can claim the funded hours on your behalf.

What the code covers

Entitlement	Hours per week	Weeks per year	Age
Universal 15 hours	15	38 (term-time)	All 3-4 year olds
Extended 30 hours	30	38 (term-time)	Working parents, 3-4 year olds
Working parent hours	15-30	38 (term-time)	Working parents, 9 months to 3 years

Your provider may offer to “stretch” funded hours across 52 weeks instead of term-time only. This means fewer hours per week but spread across the full year — useful if you need year-round childcare.

Check our Funding Eligibility Checker to see which entitlements your family qualifies for.

Reconfirming every 3 months

This is the most important thing to remember: you must reconfirm your eligibility every 3 months. HMRC sends email reminders, but set your own calendar reminder too.

What happens during reconfirmation

• Log into your childcare account
• Confirm your circumstances haven’t changed (still working, still earning enough)
• Takes less than 5 minutes

What happens if you miss it

• Tax-Free Childcare: The government stops adding top-ups. You can still use any existing balance.
• Free hours: Your eligibility code may expire. Your provider can’t claim funded hours without a valid code.
• Grace period: You get 31 days after a failed reconfirmation before entitlements stop.

Common issues and how to fix them

“We can’t confirm your identity”

This usually means the identity verification questions didn’t match. Try:

• Double-check your National Insurance number
• Make sure your name matches exactly what HMRC has on file (including middle names)
• Call the childcare service helpline: 0300 123 4097

“Your application is pending”

HMRC sometimes needs to verify your employment details manually. This can take up to 7 days. If it’s been longer, call the helpline.

“Your provider isn’t showing”

Your childcare provider must be registered to receive Tax-Free Childcare payments. Ask them:

• “Are you registered for Tax-Free Childcare?”
• If not, they can sign up at gov.uk/guidance/sign-up-to-tax-free-childcare-if-youre-a-childcare-provider

“My top-up isn’t appearing”

Top-ups usually arrive within hours but can take up to 2 working days. Check:

• You’ve reconfirmed recently (within the last 3 months)
• You haven’t exceeded the quarterly cap (£500 per child per quarter)
• Your circumstances haven’t changed (e.g., partner stopped working)

Using your childcare account with different providers

You can pay multiple providers from the same child’s account. This is useful if your child attends:

• A nursery during the day
• An after-school club
• A holiday club during school breaks
• A childminder for wraparound care

Each provider must be registered. You can add and remove providers at any time through your account.

Find registered nurseries near you

Looking for a nursery that accepts Tax-Free Childcare and funded hours? Search nurseries on Good Nurseries to find registered providers in your area, compare Ofsted ratings, and read parent reviews.

Use our Tax-Free Childcare Calculator to see how much you could save.