Government scheme 'many don't know about' worth £2,000 a year

A new study has shown that 61% of parents feel the pinch to overspend during the summer holidays, and over half are worried about affording a holiday this year. Amidst rising childcare

costs, which have spiked by 11.41% since 2023, Robert King, Nannywage Ltd's director of nanny payroll services, is advising parents to explore a lesser-known scheme that could

significantly lessen their childcare expenses this summer. The Tax-Free Childcare Scheme offers a financial breather, explained Robert, stating: "The Tax-free Childcare Scheme allows

working parents to save up to £2,000 per child annually on approved childcare costs, with the savings capped at £500 every three months, or £1,000 for children with disabilities." He

highlighted the summer perks, saying: "Over the summer holidays, parents can benefit significantly, as the scheme provides a government top-up of £2 for every £8 deposited into the

account. This is a great way to manage rising childcare costs while keeping flexibility to withdraw unused funds if plans change." For those considering how to apply for the Tax-Free

Childcare Scheme, Robert advised: "Families can apply online for Tax-free Childcare through the government website in just 20 minutes. Once the account is set up, parents can deposit

money immediately and use it to pay for nurseries, childminders, summer activity clubs, and other approved providers. Any unused money can be withdrawn at any time.", reports Lancs

Live. Who qualifies for the helping hand? Robert stated: "To qualify, each parent must earn at least 16 hours per week at the National Minimum Wage or Living Wage, but no more than

£100,000 annually. The scheme is not available to those receiving Tax Credits, Universal Credit, or childcare vouchers. "For self-employed individuals or directors, proof of income,

such as accountant statements, invoices, or bank statements, may be required to confirm eligibility. "The scheme supports children aged 11 or under, or up to 16 if they have

disabilities. Eligibility ends on September 1 following the child's 11th or 16th birthday, depending on their circumstances." _GET ALL THE LATEST AND BREAKING NEWS IN YORKSHIRE BY

__SIGNING UP TO OUR NEWSLETTER HERE._