Overview

• Martin Lewis alerts that 800,000 parents have not claimed the tax-free childcare scheme, missing out on a government top-up of £2 for every £8 paid, worth up to £2,000 per child annually and £4,000 for disabled children.
• To qualify for tax-free childcare, parents must be working and earn at least the equivalent of 16 hours on the national minimum wage but under £100,000 each, with children under 12 or under 16 for those with disabilities.
• Applications are now open for 30 hours of free weekly childcare from September 2025 for eligible children aged nine months to two years under the expanded government scheme.
• Working parents on Universal Credit can reclaim up to 85% of childcare costs, receiving up to £1,031.88 for one child or £1,768.94 for two or more children.
• Eligible families should verify that their chosen childcare provider accepts tax-free payments and set up their childcare account via GOV.UK to begin receiving top-ups.