Nursery World - Tax-Free Childcare continues to be used by less than half the families eligible

The number of families using Tax-Free Childcare has increased by more than 130,000 in the last year, reveal new HMRC statistics.

Less than half of the current eligible families are using Tax-Free Childcare PHOTO Adobe Stock

According to the latest data, 512,415 families used Tax-Free Childcare in the last tax year, up from 374,135 the year prior, however this is less than half of the number of families eligible. Recent HMRC research estimated that 1.3 million families could be eligible for the scheme.

As previously reported by Nursery World, the low take-up of the scheme has resulted in an underspend of billions of pounds and is despite numerous attempts by the Government to promote Tax-Free Childcare.

The scheme, which allows working parents to claim back £2,000 a year on childcare costs, is open to families where parents each earn a minimum of the equivalent of 16 hours a week at the national minimum wage and less than £100,000 a year.

Register now to continue reading

Thank you for visiting Nursery World and making use of our archive of more than 35,000 expert features, subject guides, case studies and policy updates. Why not register today and enjoy the following great benefits:

What's included