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Thousands of parents can claim £500 free cash to help with childcare costs during the summer holidays.

Thousands of parents can claim £500 free cash to help with childcare costs during the summer holidays.

07 August 2024  

Many families struggle with juggling work commitments and childcare over the long summer break, but there is support available to help keep your costs down.

Around 1.3 million families could be eligible for a tax-free childcare account, which could save you hundreds of pounds on childcare costs during the summer holidays.

With these accounts, the government tops up any funds you put in to pay for childcare up to GBP500 in any three months.

Despite the scale of the savings available, only 384,280 families were taking advantage of the scheme in March, meaning almost one million families are believed to be missing out.

The account can be used to pay for holiday clubs as well as childminders, nurseries, and before and after school clubs during term time.

It can be used for children up to the age of 11, or 17 if a child has a disability.

Your childcare provider must be signed up to the scheme before you can pay them through the account, so check yours first.

Helen Whately, exchequer secretary to the Treasury, said: "Tax-Free Childcare helps families with the cost of childcare bills but we know that thousands of parents could be missing out.

"That is why I'm encouraging families to sign up now and save on childcare costs

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