Introducing a tax-free childcare scheme

Department for Education survey data shows that nearly a quarter of employed mothers would increase their working hours if they could arrange good quality childcare which was convenient, reliable and affordable.

The scheme will be available to children under the age of 5 from autumn 2015, and all working parents with children under 12 will be covered within the first year. Disabled children under the age of 17 will also be eligible, in line with existing childcare rules.

The new scheme will be available to working families who each earn less than £150,000 a year, and don’t already receive support through Tax Credits or Universal Credit. In two parent families, both parents must be in work to qualify.

For every 80p eligible families pay in, we will put in 20p, providing support of up to £2,000 a year for each child.

The scheme will be open to almost 2 million families and will be delivered by HMRC.

If you’re a parent, here’s the top ten facts about the new scheme.

Source: HMRC