Research and analysis

Impact of Tax-Free Childcare on the labour market

HM Revenue and Customs (HMRC) commissioned Ipsos to carry out research into the impact of Tax-Free Childcare on working parents in the labour market.

• From: HM Revenue & Customs
• Published: 29 January 2026

Documents

Impact of Tax-Free Childcare on the labour market participation of working parents

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Technical Report: Impact of Tax-Free Childcare on the labour market participation of working parents

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Data Tables: The Impact of Tax-Free Childcare on the Labour Market Participation of Working Parents research

MS Excel Spreadsheet, 179 KB

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Details

Research was carried out in 2024 by Ipsos to understand the impact that Tax-Free Childcare (TFC) has on the labour market participation of working parents. The research involved a quantitative survey of 3,636 eligible parents and 60 follow up in-depth interviews.

The research found that TFC helped some parents increase or maintain their working hours and had more impact on the labour market participation of certain sub-groups such as self-employed parents, single parents and parents of disabled children.

Published 29 January 2026