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Funding and Fees

Unlocking More Affordable Childcare: Using Tax-Free Childcare for Wrap-around Care

Understanding Tax-Free Childcare: A Boon for Working Families

As a working parent, managing childcare costs can be a juggling act. Thankfully, Tax-Free Childcare (TFC) offers a lifeline, supporting families by subsidising childcare expenses. This government scheme aids families in paying their registered childcare providers directly, alleviating financial strain while nurturing a child's growth and development.

Tax-Free Childcare emerged as a game-changer, replacing childcare vouchers for new applicants from October 2018. Designed for working families, including the self-employed, it empowers those earning under £100k and at least £152 weekly (equivalent to 16 hours at the National Minimum or Living Wage) per individual. Eligibility extends to children aged 0 to 11 (or 0 to 16 if disabled), offering financial respite until their 11th or 17th birthday, respectively.

How Does TFC Work?

For every £8 contributed by a parent or carer, the government generously adds an extra £2 into the online childcare account, granting up to £2,000 per child annually, or £4,000 for children with disabilities. Families can navigate this scheme to cover a spectrum of childcare services, ranging from childminders, nurseries, and nannies to after-school clubs and holiday play schemes.

Wrap-around Care: Bridging the Gap with TFC

The versatility of TFC enables parents to use it for wrap-around care, ensuring seamless support for childcare beyond school hours. Here, we highlight two exemplary childminder services: Koru Kids and Bubble, both pioneering platforms offering flexible, reliable, and registered childcare solutions.

Koru Kids: Renowned for its innovative approach, Koru Kids offers a tailored childcare experience. From after-school care to specialised nanny services, their skilled carers undergo stringent vetting, providing a nurturing environment aligned with a child's needs. See more on

Bubble: This trailblazing app connects parents with trusted local babysitters, ensuring flexibility and convenience. Bubble's platform simplifies finding suitable childcare, emphasising safety and reliability. Find out more on

Applying for TFC: A Hassle-free Process

Applying for TFC remains straightforward, taking approximately 20 minutes. Essential documents include a form of ID (like a passport or P60), National Insurance numbers for you and your partner (if applicable), streamlining the process for quick and efficient approval.

Making Payments Through TFC: A Seamless Experience

Once approved, making payments through TFC is as simple as online banking. By assigning a reference number to each child, parents can pay childcare providers directly from their account, efficiently covering childcare expenses.

Tax-Free Childcare stands as a beacon of support for working families, offering financial relief and empowering parents to provide quality care for their children. It's a testament to the government's commitment to facilitating accessible and affordable childcare solutions.

For more information on TFC and how it can support your childcare needs, visit the official government childcare website.

This article aims to shed light on Tax-Free Childcare (TFC) as a beneficial scheme for working families, specifically focusing on its utility for wrap-around care and introducing two exemplary childminder services