Tax-Free Childcare Scheme

A scheme will be introduced in early 2017 where the Government will pay 20% of families’ yearly childcare costs for children under 12 years old, (capped at £2,000 per child), or under 17 years old if the child is disabled (capped at £4,000). 

It will apply to families where both parents work and each parents earns less than £100,000 per year, and a minimum weekly income at least equivalent to 16 hours at the rate of the national minimum wage.  But don’t worry - no involvement is required by employers, the scheme will be operated through online accounts.