Tax-Free Childcare vs 30 hours free childcare 2026/27
Tax-Free Childcare, 30 hours free childcare (England), Universal Credit childcare and vouchers for 2026/27: eligibility, limits and combining them.
How the main childcare schemes compare for 2026/27. Tax-Free Childcare and the Universal Credit childcare element are available across the UK; 30 hours free childcare (Free Childcare for Working Parents) is the England scheme, and Scotland, Wales and Northern Ireland run their own funded-hours schemes.
Childcare schemes compared
| Scheme | Value | Eligibility |
|---|---|---|
| Tax-Free Childcare | £2 for every £8 paid in (20% of the bill), up to £2,000 a year per child (£4,000 if disabled) | Each parent working and earning at least 16 hours a week at the minimum wage; neither over £100,000 adjusted net income; not on Universal Credit or vouchers |
| 30 hours free childcare (England) | 30 hours a week for 38 weeks | Working families, child 9 months to 4 years, same income tests |
| 15 hours free childcare (England) | 15 hours a week for 38 weeks | All 3 to 4 year olds |
| Universal Credit childcare | Up to 85% of costs, up to £1,071.09 a month (1 child) or £1,836.16 (2 or more) | Universal Credit claimants in work |
| Childcare vouchers (closed) | Up to £55 a week of wages free of tax and NI | Only if you joined on or before 4 October 2018 |
Minimum earnings in 2026/27
Both Tax-Free Childcare and 30 hours free childcare need each parent to expect to earn at least 16 hours a week at the minimum wage for their age over the next 3 months. At 2026/27 rates that is:
- 21 or over: £2,643.68 over 3 months (£10,574.72 a year on average)
- 18 to 20: £2,256.80 over 3 months
- Under 18 or an apprentice: £1,664.00 over 3 months
Self-employed parents who do not expect to earn enough in the next 3 months can use their expected average over the tax year, and anyone who started a business less than 12 months ago is eligible whatever they earn.
Worked example: topping up funded hours
A working family in England uses 30 hours free childcare for a 2-year-old and pays a nursery for extra hours and holiday weeks. Suppose the bill for those extra hours comes to £6,910 a year; this figure is an assumption, because how much funded hours reduce a bill depends on the provider.
- Paid through Tax-Free Childcare: the family pays in £5,528 and the government adds £1,382.
- The top-up stays under the £2,000 cap, which is reached at £10,000 of childcare a year.
Related pages
Frequently asked questions
Can I use Tax-Free Childcare and 30 hours free childcare together?
Yes. In England you can pay a provider for hours beyond your funded hours using Tax-Free Childcare, and GOV.UK says families getting Free Childcare for Working Parents can pay the provider using Universal Credit, childcare vouchers or Tax-Free Childcare. The funded hours themselves are free, so Tax-Free Childcare is used for the extra hours, holiday clubs or wraparound care.
Who can get Tax-Free Childcare?
You and your partner must each be working (employed or self-employed, including on sick, annual or family leave) and expect to earn at least the National Minimum Wage or Living Wage for 16 hours a week over the next 3 months: £2,643.68 if you are 21 or over. You are not eligible if either of you expects adjusted net income over £100,000, or if you claim Universal Credit or childcare vouchers. If you started your business less than 12 months ago, the minimum does not apply. You must reconfirm every 3 months.
Who can get 30 hours free childcare?
Free Childcare for Working Parents is the England scheme. A working family with a child aged 9 months to 4 years can get 30 hours a week for 38 weeks of the year. The income tests match Tax-Free Childcare: each parent must expect to earn at least 16 hours a week at the minimum wage for their age over the 3 months after applying, and neither can expect adjusted net income over £100,000. You must confirm your details every 3 months.
How much does Tax-Free Childcare pay?
For every £8 you pay in, the government adds £2, so the top-up is 20% of what reaches the provider. The top-up is capped at £500 every 3 months per child (£2,000 a year), or £1,000 every 3 months (£4,000 a year) for a disabled child. You reach the £2,000 cap on £10,000 a year of childcare per child.
What about childcare vouchers?
Childcare vouchers and directly contracted childcare are closed to new joiners: you can keep them only if you joined and your wages were adjusted on or before 4 October 2018. You can take up to £55 a week of wages free of tax and National Insurance. You cannot get Tax-Free Childcare at the same time; if you switch, you must tell your employer within 90 days of applying so the vouchers stop.
How does the Universal Credit childcare element work?
If you are working (both of you, if you have a partner, with some exceptions for disability or caring) you can claim back up to 85% of childcare costs, up to £1,071.09 a month for one child or £1,836.16 for two or more. You pay up front and claim the money back. You cannot get Tax-Free Childcare at the same time as Universal Credit.
Can I use Tax-Free Childcare to pay a grandparent?
In England and Scotland, only if the relative is a registered childminder and cares for your child outside your home. You cannot claim Free Childcare for Working Parents for care by a relative. Northern Ireland and Wales have their own rules for relatives, set out on GOV.UK.
What happens if one parent stops working?
Both schemes are reconfirmed every 3 months. You may still be eligible if your partner works and you get certain benefits or credits, such as Carer's Allowance, contribution-based Employment and Support Allowance or National Insurance credits. If you stop being eligible, Universal Credit childcare costs may be an alternative.