Take up of Tax-Free Childcare far lower than expected

Government figures show that far fewer families than expected are using the Tax-Free Childcare scheme for support with their childcare costs.

The Government estimated 1.3 million could qualify for the help, however only about one in 14 eligible families has done so. Just 91,000 families across the UK accessed the offer in December 2018.

There are likely a number of reasons for this. The shortfall is partly because the full roll-out of the scheme was delayed following technical glitches with its website. However for many families, the reason they have not moved to Tax-Free Childcare is because they are better off using another form of support, for example, remaining on Childcare Vouchers or accessing support through Universal Credit.

Employers For Childcare is working to ensure that all parents know what support they are entitled to and can choose the form of support that is best for their family, and that includes Tax-Free Childcare. We have produced a guide setting out the different forms of childcare support to help families understand the various schemes – you can download the guide from our website here.

We know it can be complex working out what is best for your family. For more information or for personal advice call our Family Benefits Advice Service on 028 9267 8200. Our trained advisors can help you to ensure that you are accessing all the financial support you are entitled to.

Whether you are currently working, considering starting work, thinking of changing jobs, or simply need some advice – we are here to help!