Two kinds of help, and you can use both
Free hours cut the number of hours you pay for. Tax-Free Childcare then tops up what you pay for the rest: for every £8 you pay in, the government adds £2.
| Free hours for working parents (England) | Up to 30 a week, 9 months to school age |
|---|---|
| Free hours for all 3 and 4 year olds (England) | 15 a week |
| Weeks a year | 38, or stretched if your nursery offers it |
| Tax-Free Childcare | £2 for every £8, up to £2,000 per child a year |
| Disabled child | Up to £4,000 a year, until age 16 |
When to apply for free hours
| For hours from 1 January | Apply by 31 December |
|---|---|
| For hours from 1 April | Apply by 31 March |
| For hours from 1 September | Apply by 31 August |
You can apply from when your child is 23 weeks old. You get a code to give your nursery, and you must reconfirm it every 3 months.
Worked example
Their 18-month-old goes to nursery 40 hours a week, 51 weeks a year, at £8 an hour. Both work and get 30 free hours and Tax-Free Childcare.
| Nursery for the year | £16,320 |
|---|---|
| Free hours (30 × 38 weeks × £8) | −£9,120 |
| Tax-Free Childcare (20% of the rest) | −£1,440 |
| They pay | £5,760 a year (£480 a month) |
Earning near £100,000?
Going over £100,000 means losing both free hours and Tax-Free Childcare. A financial adviser can help you plan pension contributions to stay under.
Find a financial adviserQuestions
Can I use Tax-Free Childcare with free hours?
Yes. Free hours cover part of your childcare, and you can pay for extra hours and charges such as meals through your Tax-Free Childcare account.
What if I get Universal Credit?
Universal Credit has its own help with childcare costs. Use the government’s childcare calculator to see which help suits you best.
Does this work in Scotland, Wales and Northern Ireland?
Tax-Free Childcare works across the UK. Free hours are different in each nation. If you get free hours outside England, pick the closest option.
What does this calculator leave out?
Childcare vouchers, Universal Credit childcare costs, the 2-year-old offer for families on some benefits, and different prices for different days. It’s a guide.