The Government is planning a new scheme to allow working families and lone parents in work to claim back 20% of childcare costs.
The new Tax-Free Childcare scheme will be introduced in phases from autumn 2015. The scheme will use vouchers which are paid directly into voucher accounts. For each £1 of childcare costs the government will pay 20p up to a limit of £1,200 each year for each child. All children under the age of five will be eligible building up over time to include children under the age of 12.
The scheme will be open to lone parents who are working and couples where both work but neither earns more than £150,000 and are not receiving tax or universal credits.
A parent who is a current member of the Employer Supported Childcare scheme can chose to remain in that scheme or switch to the new scheme if they are eligible.