Tax-Free Childcare for Easter Childcare Expenses
Summary
HM Revenue & Customs is encouraging working families to sign up for Tax-Free Childcare to save on Easter childcare costs. The scheme allows eligible families to save up to £2,000 per child annually, with government top-ups of £2 for every £8 deposited.
What changed
HM Revenue & Customs (HMRC) has issued a press release encouraging working families to utilize the Tax-Free Childcare scheme to reduce costs associated with Easter holiday childcare. The scheme offers significant savings, with eligible families potentially saving up to £2,000 per child annually (£4,000 for disabled children). HMRC highlights that in December 2025, over 542,000 families saved money, with the government contributing over £46 million to childcare costs for nearly 660,000 children.
Families are advised to check their eligibility and register for Tax-Free Childcare on GOV.UK. Eligibility criteria include having a child aged 11 or under (or 16 if disabled), parents earning at least the National Minimum Wage for 16 hours a week on average, and each parent earning no more than £100,000 annually. The scheme operates on a deposit system where the government adds £2 for every £8 deposited, up to a maximum of £500 every three months per child. Account holders must confirm their details every three months to continue receiving the government top-up.
What to do next
- Review eligibility criteria for Tax-Free Childcare
- Encourage employees to sign up for Tax-Free Childcare if eligible
Source document (simplified)
Press release
Save on Easter childcare egg-spenses with Tax-Free Childcare
Families encouraged to use Tax-Free Childcare to save thousands on their childcare bills.
From: HM Revenue & Customs Published 25 March 2026
- Working families encouraged to cut the cost of Easter childcare by signing up to Tax-Free Childcare
- Latest figures show 542,700 families saved on their childcare bills in December 2025
- More than £46 million in government cash helped with childcare costs for almost 660,000 children More than 542,000 families saved money on their childcare in December as HM Revenue and Customs (HMRC) urges families to sign up before booking their Easter holiday childcare.
Working families who sign up to Tax-Free Childcare can make yearly savings of £2,000 off their childcare costs for each of their children up to the age of 11 and £4,000 for disabled children up to the age of 16.
Visit GOV.UK to check eligibility and register for Tax-Free Childcare.
Myrtle Lloyd, HMRC ’s Chief Customer Officer, said:
£2,000 a year off childcare bills can make a big difference to household expenses. There are plenty of childcare providers to choose from to suit your needs and your children’s interests – sign up today to make those savings for the Easter school holidays and for your plans for the rest of the year. Go to GOV.UK to find out more.
Once a Tax-Free Childcare account has been opened for each child, for every £8 deposited, the government tops it up by £2. A total of £46.6 million in government cash was added to accounts in December, the latest figures show, contributing to the cost of childcare for almost 660,000 children.
A family can save up to £500 every three months for each child (£1,000 every three months if the child is disabled) which can be used to pay for any approved childcare.
Parents can choose from thousands of providers now accepting Tax-Free Childcare as payment including wraparound care or childminders for term time care, or holiday clubs and workshops during the school holidays.
Once an account is open, parents can deposit money to use straight away or keep it in the account for whenever it’s needed. Any unused money in the account can be withdrawn at any time.
Families could be eligible for Tax-Free Childcare if they:
- have a child or children aged 11 or under. They stop being eligible on 1 September after their 11th birthday. If their child has a disability, they receive up to £4,000 a year to help with higher childcare costs that are often involved, until 1 September after their 16th birthday
- the parent and their partner (if they have one) earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average
- each earn no more than £100,000 per annum
- do not receive Universal Credit or childcare vouchers Tax-Free Childcare can be used alongside the free childcare hours, subject to eligibility.
Further Information
Latest Tax-Free Childcare statistics with data available up until December 2025 were released 5 March.
For more information about Tax-Free Childcare and how to register.
Each eligible child requires their own Tax-Free Childcare account. If families have more than one eligible child, they will need to register an account for each child. The government top-up is then applied to deposits made for each child, not household.
Account holders must confirm their details are up to date every 3 months to continue receiving the government top-up.
Childcare providers can also sign up for a childcare provider account via GOV.UK to receive payments from parents and carers via the scheme.
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