From September 2017, parents of children over three-years-old will be able to take 30 hours a week of government funded childcare during term time. The scheme, which offers working parents free care for their little one, is available for parents who earn – on average – £120 a week – the equivalent of 16 hours on the national minimum wage. The earnings limit doesn’t apply for anyone who is self-employed or who started a business in the last year. The hours can be taken flexibly – for example more some weeks and fewer in others.

Whether you’re paying with vouchers, tax credits or cash, the key is that the childcare provision is registered and regulated. This includes after school and summer clubs, nurseries, playgroups, nanny, childminder or au pairs. Under the initiative, eligible families will get 20% of their yearly childcare costs up to £10,000 per child paid for by the Government. This could mean payments of up to £2,000 per child i.e, the Government pays £2 for every £8 to a childcare provider through an online account. Again, parents must be earning at least £120 a week and less than £100,000 a year. However, you can’t use tax-free childcare if you’re claiming childcare vouchers, universal credit, working tax credit or child tax credit.

Parents must apply for the free childcare on the Government website, where they will need to supply their national insurance number and get a childcare account. The account can then be used to create a code for the free childcare. Working parents can also claim £500 for every three months towards the cost of care for children under 11, with tax-free childcare.