A recent story highlights how a savvy parent saved hundreds of pounds on after school club costs using the Tax-Free Childcare scheme—a benefit that many eligible parents might be missing out on.
The Tax-Free Childcare scheme offers significant financial relief to working parents. For every £8 you pay into an online childcare account, the government contributes £2, covering up to £2,000 per child each year (or £4,000 for disabled children). This initiative has already saved countless families thousands of pounds on childcare fees.
Megan Archer-Fox, who shared her experience on MSN.com, has been utilizing the scheme since her two sons started nursery at nine months old. Over the years, the scheme significantly reduced her family’s childcare expenses. However, when her eldest son transitioned to pre-school and started benefiting from 30 hours of free childcare, she thought her need for the scheme had diminished.
Things changed when Megan needed to pay for after school club sessions for her son, who couldn’t be picked up on certain days. Initially, she paid the £9-per-session fees directly via bank transfer to the club’s accountant. It wasn’t until she stumbled across a TikTok comment that she discovered the scheme’s broader applicability. Parents could also use Tax-Free Childcare for wraparound care, including after school and breakfast clubs.
Intrigued, Megan logged into her account, searched for her son’s after school club, and found it listed. After confirming with the club’s organizer that payments through the scheme were accepted, she made the switch.
Significant Savings for Families
Even though Megan’s family only uses the after school club twice a week, the savings quickly added up. The family now saves £15 a month, which equates to over £150 annually, excluding school holidays. For parents who rely on such services more frequently, the savings could be even more substantial. Additionally, the scheme can be used for holiday clubs and play schemes during school breaks, providing further financial relief.
How to Check Your Eligibility
To benefit from Tax-Free Childcare, your childcare provider must be registered with the scheme. Parents should check directly with their provider to confirm eligibility. The scheme is available for children up to the age of 11 (or 17 for children with disabilities). Eligibility depends on factors such as your employment status, income (and your partner’s, if applicable), and your child’s circumstances.
If you’re not already using the Tax-Free Childcare scheme, it’s worth investigating. You can check Tax-free Childcare costs and saving on this Tax-free childcare calculator designed specifically keeping the needs of the deserving families in mind. The application process is straightforward, and the savings can be substantial. You can learn more about eligibility and apply through the government’s dedicated portal.
Don’t Miss Out on Valuable Savings
Many parents are unaware that the Tax-Free Childcare scheme extends beyond traditional childcare services like nurseries and childminders. Wraparound care, such as after school and breakfast clubs, and even holiday play schemes, may also be covered—offering much-needed financial relief to working families.
