Tax-Free Childcare
Each parent earning at least the National Living Wage equivalent for 16 hours/week, and neither earning over £100,000. Children up to 11 (or 16 if disabled).
According to the UK Department for Business and Trade's statutory parental leave guidance and HM Revenue & Customs (HMRC) administration data, PlainMaternity catalogues every UK statutory parental leave entitlement — Statutory Maternity Leave (SML), Statutory Paternity Leave (SPL), Statutory Adoption Leave (SAL), Statutory Shared Parental Leave (ShPL), and Parental Bereavement Leave (PBL). Eligibility rules, qualifying periods, who pays, notice requirements, and statutory pay rates are sourced directly from gov.uk's Employment Rights Act 1996 framework and the relevant amendment regulations through 2025.
See our methodology page for full source attribution, refresh cadence (statutory rates uplifted annually each April), and known limitations regarding employer-enhanced contractual pay (which often exceeds the statutory minimum). PlainMaternity is informational; HMRC and Acas are the canonical reference channels for individual eligibility disputes.
Who qualifies
Each parent earning at least the National Living Wage equivalent for 16 hours/week, and neither earning over £100,000. Children up to 11 (or 16 if disabled).
Qualifying period
Reconfirm eligibility every 3 months
Who pays
Government tops up parent contributions (£2 for every £8 paid, up to £2,000/year per child, £4,000 for disabled).
Notice required
Online application at gov.uk
Pension treatment
N/A — childcare benefit, not leave pay.
Best-for / not-for
Best for: Working parents using OFSTED-registered childcare; usually beats 30 free hours alone when combined.
Not for: Parents already claiming Universal Credit childcare element or childcare vouchers (mutually exclusive).
Governing law
Childcare Payments Act 2014
HMRC / GOV.UK primary source
Source: https://www.gov.uk/tax-free-childcare · Rates as of 2026-05-20 per HMRC rate-and-allowance publication
What this means for your family
TFC sits in the wider context of UK statutory parental support. See how it compares with other schemes on the comparison page, model the cash flow with the pay calculator, or walk through a decision flow on the Shared Parental Leave decision engine. The full editorial methodology is documented on the methodology page.
Related schemes and guides
See also our explainer guides covering eligibility, KIT days, and enhanced employer policies.
