Families in Wales could save up to £2,000 a year towards their childcare costs to help pay for October half-term holiday clubs and wraparound care during the school terms, reminds HM Revenue and Customs (HMRC).
More than 13,800 families in Wales saved money on their childcare costs in June 2022 and HMRC is urging thousands of other families to not miss the chance to save up to £500 every 3 months, or £1,000 if their child is disabled.
Overall, HMRC paid out £41.6 million in top-up payments, which was shared between more than 391,000 families across the UK in June 2022.
Families can sign up to Tax-Free Childcare to help pay for holiday clubs, before and after-school clubs, childminders and nurseries, and other approved childcare schemes. It is available to families with children up to the age of 11, or 17 if their child has a disability.
The government will pay 20% of childcare costs by topping up the money paid into a Tax-Free Childcare account. This means for every £8 paid into the online account, families will automatically receive an additional £2 in government top-up.
Families can find out more about Tax-Free Childcare via the Childcare Choices website.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:
“Tax-Free Childcare can make a big difference to families, helping with the bills for things like holiday clubs, nurseries, childminders and after school clubs. It’s easy to register – search ‘Tax-Free Childcare’ on GOV.UK.”
For thousands of families who use Tax-Free Childcare, the money they save each month on their childcare costs is money that goes back into their pockets. Accounts can be opened at any time of the year and can be used straight away, money can be deposited at any time and used when needed. Any unused money that is deposited can be simply withdrawn at any time.
More than one million families in the UK are entitled to some form of government childcare support and the government is encouraging those eligible to not miss out on their entitlements. Families can find out what childcare support is best for them via Childcare Choices.