Tax Free Scheme
Under this scheme which began rolling out in September 2017, eligible families will get 20% of their annual childcare costs paid for by the Government. The way it works is that for every 80p you pay into a newly-created Childcare Account, the Government will contribute 20p. This could mean up to £2,000 per child (the scheme assumes a maximum of £10,000 per year childcare costs per child – if you pay more, you won’t get more help).
The new scheme will be open to single parents/couples who work eight or more hours a week, including self-employed, and who pay for Ofsted-registered childcare for a child under the age of 12, or under 17 if the child is disabled. It will also be open to all qualifying parents, unlike childcare vouchers which can only be bought by people whose employer offers the scheme. Further information can be found here.