Ministers have decided to amend legislation to raise the maximum amount that parents of disabled children can pay into their childcare accounts, in recognition of the higher childcare costs families face.
Campaigners had called for the change during the Government’s consultation on the plans and at the committee stage of the Childcare Payments Bill, which was passed in December.
Tax-free childcare will be introduced in autumn this year. Under the scheme the Government will contribute 20 per cent of the cost of each child's childcare, up to a maximum of £2,000 per child per year.
For accounts for disabled children, the maximum payment for a standard three-month entitlement period will be doubled to £4,000. This means that a parent with a disabled child will be able to pay up to £16,000 into their childcare account per year and receive top-up payments of up to £4,000.
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