Parents will be able to open an online account, which they can use to pay for childcare from a registered provider.
For every £8 a parent pays in, the government will pay in an extra £2. Parents can receive up to £2,000 per child, per year, towards their childcare costs, or £4,000 for disabled children.
The scheme will be available for children under the age of 12, or under 17 for children with disabilities.
To qualify, parents will have to be in work, and each expecting to earn at least £120 a week. Each parent must not have income over £100,000 per year.
Tax-Free Childcare scheme launch to parents
Tax-Free Childcare will be introduced on 28 April 2017 and will then be gradually rolled out over 2017, with parents of children under two invited to enter the scheme first.
Parents will be able to apply for all their children at the same time, when their youngest child becomes eligible. All eligible parents will be able to join the scheme by the end of 2017.
For more information on the scheme and details on how to join please visit the GOV.UK website.
What do I need to know if I’m a provider?
Childcare providers across the country are signing up for the government’s new tax-free childcare offer helping working parents with the cost of childcare.
Childcare providers must sign up at to be able to receive payments from parents through the scheme. Providers can visit the government's Childcare Service portal to sign up, providing they have the following:
• the unique code included in their invitation letter
• the bank account details for the account they wish to receive payments into
• their Unique Taxpayer Reference (UTR) number – or their National Insurance number, if they don’t have a UTR
Its important providers sign up as soon as possible to be ready for the scheme’s launch.
Childcare providers can find more information about the scheme by visiting the GOV.UK website