Are you one of hundreds of thousands of parents missing out on up to £2,000 a year?

If you pay for childcare, you could be missing out on up to £2,000 a year in government support. According to money expert Martin Lewis, an estimated 800,000 eligible parents aren’t claiming tax-free childcare.

This government-funded top-up scheme is designed to support working families by covering some of the cost of Ofsted-registered childcare, including nurseries, childminders and holiday clubs. For every £8 you pay into a special online account, the government adds £2 - a 25% boost - up to a maximum of £500 every three months, or £2,000 per child per year. For children with disabilities, the support is up to £4,000 annually.

Who qualifies?

If all parents in your household are working and earning more than the equivalent of 16 hours at minimum wage (about £850 a month if you’re over 22), you likely qualify - unless one of you earns over £100,000 a year.

You can use the scheme for children under 12 (or under 17 if they have a disability), and it applies to both term-time childcare and registered summer holiday clubs. It's easy to check eligibility and sign up.

Help for parents on universal credit

If you’re working and on universal credit, there's an even better option: you can claim back up to 85% of your childcare costs – up to just over £1,000 a month for one child, and nearly £1,800 for two. This is claimed via your universal credit account, and while it’s paid in arrears, it can significantly reduce your costs.

Free holiday clubs and meals for eligible families

If your child gets free school meals in England and is aged 4 to 16, many councils offer free holiday clubs with meals included through the Holiday Activities and Food Programme. Search your local council’s name plus ‘holiday activities and food programme’ to find out what’s available near you. Schemes vary by region, so it’s worth checking early - spaces can fill quickly.

More support coming in September

Even more help is on the way. From September 2025, working parents will start to benefit from 30 funded hours of childcare for children aged nine months to five years. This phased rollout means that, over time, more families will get help with one of the biggest costs in parenting.