With many families now discovering which school their little one will be starting in September, it’s a good time for working parents to think ahead when it comes to childcare. And the government’s Tax-Free Childcare scheme could give them a handy financial boost, up to £2,000 per child per year.
The best bit? It’s not just the parents who benefit, it could make a real difference to you as an employer too.
Why It Matters for Business Owners
We know that childcare is one of the biggest expenses families face. When you let your team members know about support like Tax-Free Childcare, you’re not just being helpful, you’re reducing stress, boosting morale and making it easier for parents to stay in or return to work.
For every £8 paid into a Tax-Free Childcare account, the government adds £2. That’s up to £500 every three months for each child and for children with a disability, that support increases to £1,000, helping to ease some of the additional pressures many families face.
Parents can use it to cover a wide range of approved childcare, including:
- Childminders
- After-school clubs
- Holiday clubs and wraparound care
It’s available for children up to the age of 11, and for those with additional needs, the support continues until they turn 16, giving families that little bit of extra help when it’s most needed.
What Your Team Members Need to Know
To be eligible, the parent (and their partner, if they have one) must:
- Be earning at least the National Minimum Wage or Living Wage for an average of 16 hours per week
- Each earn less than £100,000 per year
- Not be claiming Universal Credit or receiving childcare vouchers
Each child needs their own account, and parents need to reconfirm their details every three months to keep receiving the top-up.
Especially Useful for Parents Returning to Work
For any team members coming back from parental leave or increasing their hours, Tax-Free Childcare can help ease the transition. And with many families finalising childcare plans for September, now’s the perfect time to highlight it.
What You Can Do to Help
Here are a few easy ways you can support your team:
- Share the GOV.UK link: https://www.gov.uk/tax-free-childcare
- Add a section on Tax-Free Childcare to your parental leave policy or welcome back packs
- Encourage your managers and team leads to raise awareness, especially with new or soon-to-be parents
By sharing this information, you’re not just ticking a box—you’re showing you care about your team and want to support them in balancing work and home life. And that can go a long way towards keeping brilliant people in your business.
GreenStones are Here to Help
If you’ve got any questions about how to raise awareness of the Tax-Free Childcare scheme in your business, or you’d like a hand sharing the right information with your team, please give us a call on 01733 371180.
While this is something team members set up and manage themselves, we can help you understand how it fits alongside your other policies and support options.