Summer holidays can be brilliant fun for the kids – but they can also be a real stretch on your finances. If your children are under 12 and you’re planning to use a nursery, childminder, after school club or summer camp, it’s worth looking into Tax-Free Childcare.
Here’s how it works:
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For every £8 you pay in, the government adds £2 – up to £2,000 per child each year (or **£4,000 if your child is disabled).
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That means saving £8,000 gets topped up to £10,000.
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You can then use the funds to pay any Ofsted-registered provider.
And the best part? It doesn’t just have to be parents who pay in — grandparents, aunts, uncles, or anyone else can contribute.
Who qualifies?
✅ You (and your partner, if applicable) must be working, earning at least the minimum wage
❌ You’re not eligible if either of you earn more than £100,000 (adjusted net income) this tax year
Employers – a quick win for your team
If you’re an employer, it’s worth reminding your team about this scheme. The government has found that lots of eligible families haven’t yet opened their accounts — so a gentle nudge could make a big difference.