Parents miss out on childcare funding

Parents are being urged to check whether they could be eligible for funding towards their childcare costs.

More than 401,300 families collectively benefited from £44.4 million in government funding towards childcare costs in September 2022, HM Revenue and Customs (HMRC) said.

But it added that thousands of families are still missing out on the Tax-free Childcare top-up. Tax-free Childcare provides working families, earning up to £100,000 a year, with financial help towards childcare.

For every £8 paid into a Tax-free Childcare online account, families automatically receive an additional £2 from the government. They can receive up to £500 every three months (adding up to £2,000 a year), or £1,000 (£4,000 a year) if their child has disabilities.

Myrtle Lloyd, HMRC’S director general, said: “We know childcare can be expensive so using Tax-free Childcare can make a huge difference to household finances. To find out more, search ‘Tax-free Childcare’ on gov.uk.”