Tax-Free Childcare is a UK government scheme that tops up parents' childcare payments by 20%. For every £8 paid into a childcare account, the government adds £2 — up to a maximum of £2,000 per child per year (£4,000 for disabled children, capped at £500 or £1,000 per quarter).
To qualify, both parents (or the single parent) must be working and earning between £6,282 and £100,000 per year, depending on age. Tax-Free Childcare can be used alongside funded hours to cover additional childcare costs. It cannot be used at the same time as the Universal Credit childcare element — parents on UC should compare both options to see which provides more support. For a full explanation of how the scheme works, see our guide to Tax-Free Childcare.
This calculator estimates your quarterly and annual savings based on your actual childcare costs.
This tool provides guidance estimates only. Eligibility, funding, and costs can vary by location and individual circumstances.
Cost assumptions reference Coram Family and Childcare Survey 2025 data.
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