Martin Lewis has issued a warning to parents across the UK who could be missing out on free childcare.
His MoneySavingExpert website alerted families that they could receive up to £2,000 a year in childcare support.
If the child has a disability, the total could rise up to £4,000 a year in support.
For every 80p you put in your tax-free childcare account, the state adds 20p.
Breaking this down, this means you can get up to £500 every 3 months for each of your children, and up to £1,000 every 3 months if a child is disabled.
MSE said this “essentially gives you basic-rate tax back on your bill.”
Am I eligible for tax-free childcare?
According to the government, your eligibility depends on:
- if you are working
- your income (and your partner’s income, if you have one)
- your child’s age and circumstances
- your immigration status
Your child must be 11 or under and usually live with you. They stop being eligible on 1 September after their 11th birthday.
Adopted children are eligible, but foster children are not.
If your child is disabled you may get up to £4,000 a year until they’re 17. They’re eligible for this if they:
- get Disability Living Allowance, Personal Independence Payment, Armed Forces Independence Payment, Child Disability Payment (Scotland only) or Adult Disability Payment (Scotland only)
- are certified as blind or severely sight-impaired
You’re expected to earn at least £1,853.28, which is the National Living Wage for those over 23. Your partner must earn this too.
You cannot get tax-free childcare at the same time as claiming Working Tax Credit, Child Tax Credit, Universal Credit or childcare vouchers.
Note that tax-free childcare is different to Child Tax Credit which we have more information about here.
