Working parents can save money on childcare during these summer holidays when using holiday clubs, childminders or sports activities.
Tax-free childcare accounts allow parents to deposit £8 with the government then topping-up another £2 - limited to £500 deposits every three months (£1,000 for disabled children).
There was a significant dip in the usage of tax-free childcare due to pandemic restrictions closing down schools and services but there seems to be a recovery beginning from around October 2020.
As of March 2021 282,000 tax-free childcare accounts have been in active use with 329,000 children benefiting from the scheme. This is a 14 percent increase on the previous year.
30,000 self-employed parents, who could not use the previous childcare voucher scheme, were using tax-free childcare accounts in March 2020 and after a pandemic-related dip figures for usage are back to a rising trend. About 15 percent of all accounts are registered to a self-employed parent.
The government has spent over £33 million on topping up the accounts, at a rate of £2 for every £8 deposited by the account holder.
Learn more help with childcare at https://www.gov.uk/tax-free-childcare.