HM Revenue & Customs published a press release on 4 August 2026 encouraging working families to check whether they qualify for Tax-Free Childcare ahead of Playday on 5 August. According to HMRC statistics for March 2026, released in May 2026, families using the scheme saved an average of almost £100 a month, and the number of families using it to pay for childcare for children aged 8 and above increased by more than 20% compared with the previous year.

The scheme offers up to £2,000 per year per child, or £4,000 for a disabled child, through a £2 government top-up for every £8 deposited. HMRC said almost 75,000 providers were signed up to receive payments. Accounts are available for children aged up to 11, or up to 16 for a disabled child, and can cover nurseries, childminders, holiday clubs and after-school clubs.

HMRC Chief Customer Officer Myrtle Lloyd said the scheme could help with summer childcare plans and the term ahead, urging families not yet signed up to apply. Eligibility generally requires each parent and partner to earn at least the National Minimum Wage or Living Wage for 16 hours a week on average and no more than £100,000 a year, and not to receive Universal Credit or childcare vouchers.