Parents urged to claim tax-free top-up to help with childcare costs over Easter
Working parents could be due a £500 tax boost every quarter or £2,000 over the year ahead.
Working parents could save up to £2,000 on childcare costs over the 2025/26 financial year by taking advantage of a scheme administered by HM Revenue and Customs (HMRC). With the Easter break just a few weeks away, families yet to sign up for Tax-Free Childcare could be missing out on annual savings of up to £2,000 per child, or £4,000 if their child is disabled.
Tax-Free Childcare can help pay for approved childcare for children aged 11 or under, or up to 16 if the child has a disability.
Parents can receive up to £500 (or £1,000 if their child is disabled) every three months, which means for every £8 paid into their online account, they will automatically receive an additional £2 top up from the UK Government.
READ MORE: Scottish Government expands Council Tax debt scheme to help more people struggling with paymentsREAD MORE: Cost of living support for individuals and families on low incomes in six local council areasHMRC said it takes just 20 minutes to apply online for a Tax-Free Childcare account and can be used to help pay for a child’s nursery, childminder, breakfast or after school club or holiday activity club.
Once an account is opened, parents can deposit money immediately, so it is ready to be used whenever it is needed; and unused money in the account can be withdrawn at any time.
Eligibility for Tax-Free Childcare
Families could be eligible for Tax-Free Childcare if they:
- Have a child or children aged 11 or under. They stop being eligible on September 1 after their 11th birthday. If their child has a disability, they may get up to £4,000 a year until September 1 after their 16th birthday
- 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 Tax Credits, Universal Credit or childcare vouchers
A full list of the eligibility criteria is available on GOV.UK here.
Latest Benefits News
Financial support for parents in Scotland
Social Security Scotland delivers five family payments which can help pay for extra school term expenses alongside everyday family costs like food, clothing and days out.
Scottish Child Payment is a weekly payment of £26.70 for eligible families with children up to the age of 16 - the payment is worth £106.80 every month and is only available north of the border.
Combined with Child Benefit payments from HMRC, parents could be due up to £209 each month in additional support. Child Benefit is a separate UK-wide payment worth £25.60 for the eldest or only child and is also paid every four weeks, amounting to £102.40.
The three Best Start Grant payments and Best Start Foods, also part of social security support, are designed to help families at key stages in their children’s early years, including during pregnancy.
There is no cap on the number of children in one family who can receive these payments.
One-off payments for families
- Best Start Grant Pregnancy and Baby Payment - one-off payment of up to £754.65 available after 24 weeks of pregnancy until a baby turns 6 months.
- Best Start Grant Early Learning Payment - one-off payment of £314.45 to help with the costs of early learning when a child is between two, and three years and six months.
- Best Start Grant School Age Payment - one-off payment of £314.45 to help with the costs of starting school available between June 1 and the last day in February in the year when a child is first old enough to start primary one.
- Best Start Foods - up to £42.40 every four weeks from pregnancy up to when a child turns three to help buy healthy food, milk and first infant formula.
Financial help for Scots
Scottish Child Payment
Scottish Child Payment helps towards the costs of supporting your family and is a weekly payment of £26.70 that you can get for every child you look after who is under the age of 16. Payments are made every four weeks and worth £106.80 per child.
Parents, carers and guardians can get more information on the dedicated Children and Family section on mygov.scot here or by calling Social Security Scotland free on 0800 182 2222.
Families can learn more about the childcare offers available to them and what could fit their family by visiting Childcare Choices on GOV.UK here.
Families in Scotland may be able to access help during the ongoing cost of living crisis through the Cost of Living Support Scotland website here.