Through Tax-Free Childcare, families can receive up to £2,000 a year per child - or £4,000 if their child is disabled - to put towards the cost of childcare. The money can help towards the cost of holiday clubs, before and after-school clubs, childminders and nurseries, and other approved childcare schemes.
The government will pay 20% of childcare costs by topping up the money paid into a Tax-Free Childcare account. This means for every £8 paid into the online account, families will automatically receive an additional £2 in government top-up.