The UK government's Tax-Free Childcare scheme adds £2 for every £8 you pay into a government childcare account — a 20% top-up, capped at £2,000 per child per year (£4,000 for disabled children). Enter your annual childcare spend below to see how much the government contributes and what you actually pay.
Government top-up per year
You open a government childcare account online at GOV.UK. When you pay money in, the government automatically tops it up by 25% of what you deposit (equivalent to 20% of the total). In practice that means for every £8 you pay, the government adds £2.
The top-up is paid quarterly, capped at £500 per quarter (£2,000 per year) per child, or £1,000 per quarter (£4,000 per year) for a disabled child. You then use the account balance to pay your registered childcare provider directly.
| Requirement | Detail |
|---|---|
| Parents working | Both parents (or sole parent) must be in work |
| Minimum earnings | At least £10,553/year each (NLW x 16 hrs x 52 wks at £12.71/hr for 2026) |
| Maximum income | Neither parent over £100,000 adjusted net income |
| Child's age | Under 11 (or under 17 if disabled) |
| Childcare provider | Must be Ofsted-registered (or equivalent) |
Self-employed parents qualify too, as long as they meet the earnings threshold. If you are on maternity, paternity or adoption leave you can still apply within 31 weeks of starting the leave.
| Childcare spend | Gov top-up | You pay |
|---|---|---|
| £5,000/child | £1,000 | £4,000 |
| £8,000/child | £1,600 | £6,400 |
| £10,000/child | £2,000 (max) | £8,000 |
| £15,000/child | £2,000 (max) | £13,000 |
The maximum saving is always £2,000 per child per year, regardless of how much you spend above £10,000. Two children at £10,000 each saves you £4,000.
Tax-Free Childcare works alongside the 30 hours free childcare entitlement for 3- and 4-year-olds. You can use the scheme to pay for extra hours beyond the free 30, wraparound care before and after nursery sessions, and holiday clubs. You apply for both through the same GOV.UK Childcare Choices service. For the impact on your family finances more broadly, the child benefit calculator shows the separate weekly payment you may also receive.
You open a government childcare account and pay money in. For every £8 you deposit, the government adds £2 — a 20% top-up. The maximum government contribution is £2,000 per child per year (£500 per quarter), or £4,000 for a disabled child.
Both parents (or the sole parent) must be working and each must earn at least the National Living Wage for 16 hours a week — currently £10,553 a year based on £12.71/hr. Neither parent can earn over £100,000 adjusted net income. The child must be under 11 (or under 17 if disabled).
Yes. Eligible 3- and 4-year-olds can get 30 hours of free childcare during term time, and you can use Tax-Free Childcare to pay for any additional hours, wraparound care or holiday clubs.
If you spend £10,000 a year on childcare for one child, the government adds £2,000, so you pay only £8,000. For two children at £10,000 each, you save £4,000 in total.
Childcare vouchers closed to new applicants in October 2018. For most families Tax-Free Childcare is more generous — up to £2,000 per child compared with about £930 in tax and NI savings from vouchers. However, higher-rate taxpayers already on vouchers may still benefit more from staying.
