PARLIAMENTARY WRITTEN QUESTION
(5 June 2025)

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of enabling parents to be paid their childcare funding using their government tax-free childcare account.

Asked by:
Ben Goldsborough (Labour)

Tax-Free Childcare (TFC) provides parents with financial support with the aim of allowing parents to work and earn more. It enables parents access funding of up to £2,000 per child for children up to 11 years-old (16 and up to £4,000 if the child is disabled). In addition to this, TFC caters to self-employed parents, and parents that work irregular hours and may be unable to access traditional childcare provisions.

Since its introduction in 2017, take-up of TFC has consistently increased. For the Financial Year 2024-25, approximately 826,000 families used TFC for 1,085,000 children. In March 2025, 580,000 families used TFC for 709,000 children, higher than any previous month since TFC began.

Answered by:
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