The government has today published its response to a further consultation on the delivery of childcare accounts within the Tax-Free Childcare scheme.
After carefully considering the responses to this consultation alongside the responses to the previous consultation, and the evidence on all of the options for delivering accounts, the government has decided that National Savings and Investment (NS&I) will be the scheme’s account provider, working in partnership with Her Majesty’s Revenue and Customs (HMRC).
The Tax-Free Childcare scheme was announced at Budget 2013, and will be available to up to 1.9 million working families, providing 20% support for childcare costs up to £10,000 per year for each child. As such, it will be worth up to £2,000 per child per year. The government is committed to introducing Tax-Free Childcare in autumn 2015 and the scheme will be rolled out to all families with children under the age of 12 within the first year.
Parents will qualify for the scheme if all parents in a household are in work, with income less than £150,000 a year, and are not already receiving support through tax credits or Universal Credit.
If you’re a parent and want to find out more about the Tax-Free Childcare scheme, here’s the top ten facts.