Tax free childcare worth £2,000 per child every year
New tax free childcare scheme for 2015
A new tax free childcare scheme is being introduced in autumn 2015 that will save families up to £2,000 per year for each child. Working families with children aged under 12 will be able to use the tax free child care scheme
How will the tax free childcare scheme work?
Parents will be able to open an on-line account with National Savings & Investments. For every 80p eligible families pay in, the government will contribute 20p up to £10,000 a year per child. Parents will be able to use the vouchers for any Ofsted regulated childcare in England and the equivalent bodies in Scotland, Wales and Northern Ireland.
Parents can then choose to spend their tax free child care vouchers with any Ofsted registered provider.
Children up to age 16 with disabilities will also be eligible as they are now
Working families can use this scheme where:
both parents are in work
each parent earns less than £150,000 a year
parents aren’t already receiving support through tax credits or universal credit
This is good news for the many parents with school age children who do not currently benefit from the free childcare available to parents with children aged 3 and 4.