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February 2018

Tax-Free Childcare is available to over two million households to help with the cost of childcare. Working parents can apply via an online childcare account, and access up to £2,000 per child, or £4,000 for disabled children. Everyone who earns at least £120 per week on average, but doesn't exceed £100,000 per annum, can apply for the scheme, which is fairer and better targeted than vouchers.

Parents will not receive support from Tax-Free Childcare where they are in receipt of Tax Credits or Universal Credit. This is because there is separate provision for childcare support within these systems. However, families who are eligible for both will have the freedom to choose which scheme best meets their needs.

In addition to Tax-Free Childcare, 30 hours of free childcare per week is available for working parents of three and four-year-olds in England. There is also now more generous support available for parents who receive support under Universal Credit instead, who are able to claim up to 85 per cent of childcare costs.

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