Tax-free childcare and free hours — every parent's UK childcare support
Quick answer: UK working parents have two big government childcare schemes: Tax-Free Childcare (a 20% top-up worth up to £2,000 a year per child) and Free Childcare Hours (15 or 30 hours of subsidised care, expanding to 9-month-olds from September 2025).
UK working parents have two big government childcare schemes: Tax-Free Childcare (a 20% top-up worth up to £2,000 a year per child) and Free Childcare Hours (15 or 30 hours of subsidised care, expanding to 9-month-olds from September 2025).
Last reviewed:
Primary source: https://www.gov.uk/get-tax-free-childcare
Tax-Free Childcare (TFC)
You open an online childcare account at gov.uk/tax-free-childcare. For every £8 you pay in, the government adds £2 — up to £500 per quarter per child (so a maximum £2,000 a year, or £4,000 if your child is disabled).
The money goes from your childcare account directly to a registered childcare provider — registered childminders, nurseries, after-school clubs, holiday clubs and many ofsted-registered activities.
Reconfirm eligibility every 3 months online. If you stop being eligible mid-quarter you can withdraw what's left (losing the government top-up on it).
Free Childcare Hours
All children aged 3 and 4 in England get 15 hours a week free of childcare in term-time (38 weeks a year), regardless of parental income.
Working parents get 30 hours a week — currently from age 9 months (introduced in stages from April 2024). From September 2025, the full 30 hours is available from 9 months to school age.
Each working parent must earn at least £196/week (approximately 16 hours at the National Living Wage) and have adjusted net income below £100,000. Above £100,000 you lose all entitlement — see our £100,000 tax trap guide.
Choosing between schemes
You cannot use Tax-Free Childcare while claiming Universal Credit, working tax credit childcare element, or childcare vouchers. You can usually combine TFC with the free hours (TFC pays for any hours beyond the free entitlement).
For most families on UC with significant childcare costs, the UC childcare element (covers up to 85% of costs) pays more than TFC. For working families above the UC income limit, TFC is usually best.
Scotland, Wales and Northern Ireland have their own free-hours schemes — generally fewer hours than England, with different eligibility from age 3.
Common questions
- What counts as 'working' for these schemes?
- Both employed and self-employed parents count, including company directors. You need to earn at least £196/week on average (or for the next 3 months for new businesses). Parental leave does not disqualify you in the leave period.
- What if one parent earns over £100,000?
- You lose entitlement to both Tax-Free Childcare and free hours if either parent's adjusted net income exceeds £100,000. Pension contributions reduce adjusted net income — a £4k pension contribution on £104k earnings preserves the entitlement.
- Can grandparents be paid through Tax-Free Childcare?
- Only if they are a registered childminder providing care outside the child's own home. Most grandparent care is informal and doesn't qualify — but grandparents looking after under-12s can claim 'Specified Adult Childcare Credit' to fill NI gaps if the parents claim Child Benefit.