Over 23,700 families in Wales cut childcare costs thanks to Tax-Free Childcare

Over 23,700 families in Wales cut their childcare costs thanks to Tax-Free Childcare

Tax-Free Childcare has saved 23,765 families in Wales on their childcare costs during the 2022 to 2023 tax year, an increase of nearly 6,000 from the previous year according to the latest statistics released by HM Revenue and Customs.

With thousands more families benefitting from the UK Government top up year on year, HMRC is reminding eligible working families of the financial support available to pay for approved childcare including holiday clubs, breakfast and after school clubs, child minders and nurseries.

Last year, £533 million in government cash was shared by families across the UK who saved money on their childcare bills.

Working families, with children up to the age of 11, or 16 if their child has a disability, can save up to £2,000 a year per child or £4,000 a year if their child is disabled.

For every £8 paid into a Tax-Free Childcare account, families automatically receive an additional government top up of £2. Families can save up to £500 every 3 months for each child or £1,000 if their child is disabled.

This is one of many ways the UK Government is easing cost of living for people across the country, whilst taking action to halve inflation this year which is currently adding pressure to household budgets.

Victoria Atkins, The Financial Secretary to the Treasury, said: “While thousands more working families are benefitting from Tax-Free Childcare, which is making a real difference to their childcare bills, many more are missing out on the help they’re entitled to.

“Parents should check their eligibility and apply online, the top-up could make a big difference to working families at a time they need it most.”

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Tax-Free Childcare is a flexible benefit for families, allowing them to save towards the cost of childcare throughout the year and use when they need it.

“It can be a real boost to the household budget of working families. Search ‘Tax-Free Childcare’ on GOV.UK and sign up today.”

Over one million families could be eligible for Tax-Free Childcare. Families who haven’t signed up can check their eligibility and sign up to start saving.

Opening a Tax-Free Childcare account is straightforward and can be done online in about 20 minutes.

Money can be deposited at any time at any time of the year to be used straight away, or whenever it is needed. Unused money in the account can be withdrawn at any time.