Published August 18, 2026 Written by NDNA

Tax Free Childcare: Helping Families and Supporting Nursery Sustainability in Wales

Many working families are unaware of the support available to help with childcare costs. By promoting Tax Free Childcare, nurseries can help families access financial support, improve affordability, increase occupancy levels, and strengthen relationships with parents.

What is Tax Free Childcare?

Tax Free Childcare is a UK Government scheme designed to help eligible working families pay for childcare. For every £8 a parent pays into their childcare account, the Government adds £2. Parents can receive up to £2,000 per child each year, or up to £4,000 per year for a disabled child.

To be eligible, parents generally need to be working (or returning to work), and their child must be aged 11 or under, or 16 or under if disabled. Parents must reconfirm their eligibility every three months to continue receiving support.

Quick Facts for eligible working families

Government contributes £2 for every £8 paid by parents

Up to £2,000 support per child each year

Up to £4,000 support per year for disabled children

Available to eligible working families

Can help parents access more childcare hours than they could otherwise afford.

Why Should Nurseries Promote Tax Free Childcare?

Promoting Tax Free Childcare can benefit both families and childcare providers by:

Making childcare more affordable for parents

Supporting families returning to or remaining in work

Helping parents increase the childcare sessions they can afford

Improving occupancy and take-up of childcare places

Demonstrating your commitment to supporting local families

Providing a straightforward and secure payment process.

Many settings successfully promote the scheme through parent newsletters, family apps, websites, social media channels, welcome packs, and discussions during nursery tours.

Nursery Success Stories

Osbourne Lodge Day Nursery, Pontypool

Nikola, owner of Osbourne Lodge Day Nursery, said: “I always take the time to explain Tax Free Childcare as a lot of parents are not aware. Signposting them to information about help with their childcare cost is a help to the family. We also have the ‘Family App’ which is a platform to communicate with parents, we promote and explain how to use Tax Free childcare here. It is lovely to hear that parents find it beneficial; my parents were happy to share their experiences. One parent explained that using Tax Free Childcare significantly improved affordability, enabling their family to access the childcare needed to remain in work. They also described the application and payment process as simple and easy to manage”.

Noah’s Ark Day Nursery, Narberth

Hayley, owner of Noah’s Ark Day Nursery Said: “I discuss Tax Free Childcare with families during visits and regularly share information through the nursery’s website, social media channels, and family app. We also remind parents about available support when childcare fees increase. My parents have reported that the scheme has eased financial pressures and that the application process was straightforward”.

Rainbow Reef Daycare, Haverfordwest

Bex and Bron at Rainbow Reef Daycare said: “information about Tax Free Childcare is shared during nursery visits, in parent welcome packs, and through the family app. Promoting available financial support is essential to help families access childcare and supports children to benefit from early years provision. A parent using the scheme described it as easy to use and highlighted that the Government’s contribution makes a significant difference to monthly childcare costs”.

Top Tips for Nurseries

To help more families benefit from Tax Free Childcare:

Discuss the scheme during nursery tours

Include information in welcome packs

Share reminders through apps you use to communicate with families

Promote the scheme on your website and social media channels

Encourage parents to check their eligibility regularly

Ensure staff are aware of the latest childcare funding options available to families.

Find Out More

Tax Free Childcare: https://www.gov.uk/Tax Free-childcare

Benefits Calculator: https://www.gov.uk/benefits-calculators

Welsh Government childcare support: https://www.gov.wales/get-help-paying-childcare

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