Families with jobs are being advised to reduce their escalating Easter childcare expenses, with potential savings reaching £2,000 for each child available.

With the school break drawing near, HM Revenue and Customs is urging households to register for the government’s Tax-Free Childcare initiative before securing places at clubs, camps or with childminders.

The campaign follows figures showing that over 542,700 households benefited from reduced childcare costs during December 2025, with official support exceeding £46 million in one month alone.

The scheme operates through a straightforward deposit mechanism where qualifying households can increase their childcare spending. The government contributes £2 for every £8 deposited by parents, effectively providing families with a 25 percent increase on their childcare expenditure. This arrangement enables parents to save up to £2,000 annually for each child and up to £4,000 yearly for children with disabilities. In total, almost 660,000 children received support through the programme during December, assisting households in coping with climbing care expenses.

The timing proves particularly advantageous for Easter holiday childcare. From activity clubs and sports sessions to before and after-school provision, numerous providers now accept Tax-Free Childcare payments, making it a viable choice for parents seeking to cover the Easter break.

Myrtle Lloyd, HMRC’s Chief Customer Officer, noted that the financial benefits could prove substantial for family budgets. She stated that removing £2,000 annually from childcare expenditure could significantly impact household costs. She further noted that many childcare options exist and encouraged immediate registration to access these savings for the Easter school holidays and subsequent periods.

Households can obtain official contributions worth £500 per quarter for each child and £1,000 per quarter for children with disabilities. These funds may be utilised straightaway or maintained in the account for later childcare requirements, with any unspent amounts accessible for withdrawal whenever needed.

Eligibility requires meeting several conditions. Prospective participants should visit GOV.UK to verify their status. Qualifying households must have a child aged 11 or younger, or up to 16 for those with disabilities. Both parents or guardians must earn at least the equivalent of 16 hours weekly at the national minimum wage rate while neither individual’s annual income exceeds £100,000. Applicants must not currently receive Universal Credit or childcare vouchers.

The programme can supplement free childcare hours, providing households with additional financial assistance. Parents need to establish a distinct account for every child and verify their circumstances every three months to continue receiving the government contribution.