27 Mar 2026
HMRC is urging families to sign up for Tax-Free Childcare (TFC) before booking their Easter holiday childcare.
More than 542,000 families saved money on their childcare in December, the tax authority says.
Working families who sign up to TFC can make yearly savings of £2,000 off their childcare costs for each of their children up to the age of 11 and £4,000 for disabled children up to the age of 16.
Once a TFC account has been opened for each child, for every £8 deposited, the government tops it up by £2. A total of £46.6 million in government cash was added to accounts in December, the latest figures show, contributing to the cost of childcare for almost 660,000 children.
A family can save up to £500 every three months for each child (£1,000 every three months if the child is disabled) which can be used to pay for any approved childcare.
Myrtle Lloyd, HMRC's Chief Customer Officer, said: '£2,000 a year off childcare bills can make a big difference to household expenses. There are plenty of childcare providers to choose from to suit your needs and your children's interests – sign up today to make those savings for the Easter school holidays and for your plans for the rest of the year. Go to GOV.UK to find out more.'