Martin Lewis reveals how families can get £2,000 towards summer childcare – for free
Parents urged to check if they're eligible for help with summer childcare costs
If you’re staring down the barrel of six long weeks of summer holiday childcare and wondering how you’re going to afford it, consumer champion Martin Lewis has some very good news: you could be missing out on up to £2,000 a year in government-funded help – and it’s completely free to apply.
In the latest MoneySavingExpert newsletter, Martin is encouraging working families across the UK to check their eligibility for Tax-Free Childcare – a scheme that could boost your budget just in time for the school holidays.
“The school summer holidays add a time and money burden on many parents, yet millions are unaware of potential help to cover the cost,” said Martin.
Here’s what parents need to know – and how to claim.
What is Tax-Free Childcare and how much could you get?
The Tax-Free Childcare scheme helps working parents by covering up to 20% of their annual childcare costs – up to a maximum of £2,000 per child per year (or £4,000 if your child is disabled).
Here’s how it works: for every £8 you pay into a designated childcare account, the government adds £2. You can then use the money to pay registered childcare providers, from nurseries to after-school clubs, or even summer camps.
The scheme applies to children up to 11 years old (or 16 if disabled), and the funds can be saved and used as needed – there’s no use-it-or-lose-it deadline.
Who can apply?
You might be eligible if you and your partner (if applicable):
- Are employed or self-employed
- Each earn at least the equivalent of 16 hours per week at minimum wage
- Each earn less than £100,000 per year
- Are not already claiming Universal Credit or childcare vouchers
You can apply online via Childcare Choices on GOV.UK. The process takes around 20 minutes, and you’ll usually find out if you’re eligible straight away.
What counts as ‘approved childcare’?
One of the most common reasons families miss out on this support is a misunderstanding of what types of childcare qualify. Martin clarified in his newsletter:
“Whether it's nurseries, childminders, holiday or after-school clubs, or even summer camps, what matters for all the help is whether providers are registered.”
That means:
- In England and Wales: Providers must be registered with Ofsted
- In Scotland: Providers must be registered with the Care Inspectorate
- In Northern Ireland: Providers must be registered with the Health and Social Care Trust
Martin also advised: “With Tax-Free Childcare, it is also worth double-checking they will accept payment via it – the vast majority do, but check just in case.”
Why aren’t more parents claiming?
Despite nearly 826,000 families using the scheme last year, Martin Lewis believes around 825,000 eligible families still aren’t signed up.
Why? “Because the name – Tax-Free Childcare – is totally misleading as it has nowt to do with tax,” he wrote.
This confusion means many families wrongly assume they won’t qualify, or simply don’t realise it can apply to older children’s wraparound care and summer clubs – not just nursery fees.
Extra help for families in Scotland
If you live in Scotland, there’s additional help available through Social Security Scotland:
- Scottish Child Payment – £27.15 a week per child under 16 (paid every 4 weeks)
- Best Start Grant – up to three one-off payments for early years costs:
- Pregnancy and Baby Payment: up to £767.50
- Early Learning Payment: £319.80
- School Age Payment: £319.80
- Best Start Foods – up to £43.20 every 4 weeks for healthy food for children under 3
These are available for eligible families receiving certain benefits. You can apply online via mygov.scot.
Quick checklist: Could you be missing out?
- ✅ Are you (and your partner) working and earning over £167 per week?
- ✅ Is your child under 11 (or under 17 and disabled)?
- ✅ Are you using a registered childcare provider?
- ✅ Are you not on Universal Credit or childcare vouchers?
If you answered yes to all of the above, you could be entitled to up to £500 every three months per child – and you don’t need to wait until term starts again to use it.
Childcare costs are one of the biggest expenses for UK families – especially during the summer holidays when wraparound support ends and full-day cover becomes essential.
Martin Lewis’s message is clear: don’t assume you’re not eligible. A quick check could unlock thousands of pounds in help you didn’t even know existed.
Even if you only use childcare during the school holidays, it’s worth applying,
Ready to claim? Head to Childcare Choices on GOV.UK to check your eligibility and apply online in minutes.
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Authors
Ruairidh is the Digital Lead on MadeForMums. He works with a team of fantastically talented content creators and subject-matter experts on MadeForMums.