HMRC has issued a reminder to working parents earning less than £100,000 per year to claim Tax-Free Childcare, a government scheme that can provide up to £2,000 annually per child. The scheme offers up to £500 every three months for each child under 11, and up to £1,000 every three months for disabled children, amounting to £4,000 per year. According to Daily Express - Finance, Martin Lewis, founder of Money Saving Expert, described the application process as taking roughly 30 minutes and noted that around 800,000 parents are missing out on the benefit. HMRC posted a reminder on X on April 5, explaining that for every £8 deposited into a childcare account, the government adds a £2 top-up.
Child Benefit rates have increased for the 2026/27 tax year, with weekly payments rising by 3.8% to £27.05 for the first child and £17.90 for additional children, according to multiple reports. HMRC confirmed that early Child Benefit payments will be made in May due to bank holidays: payments due on May 4 will be paid on May 1, and those due on May 25 will be paid on May 24. The increase applies from April 6, and parents should check their payment schedules to ensure they receive the correct amounts.
It takes roughly 30 minutes to apply for Tax-Free Childcare and around 800,000 parents are missing out.
HMRC warned that Child Benefit claimants earning over £60,000 per year may have to repay some or all of their Child Benefit through the High Income Child Benefit Charge. According to multiple reports, the charge applies if either you or your partner earns over £60,000, with a 1% repayment required for every £200 over the threshold, and full repayment if income reaches £80,000 or more. Parents earning above these thresholds should consider whether to opt out of receiving Child Benefit payments to avoid a tax bill at the end of the year.
Tax-Free Childcare is a UK-wide scheme covering England, Scotland, Wales, and Northern Ireland, according to research. The scheme is open to all parents of children under 12, or under 17 if the child is disabled. To apply, parents must open a Tax-Free Childcare account online. Eligibility requires that both parents in a couple are working (employed or self-employed) and earn at least £2,643 each every three months for the 2026/27 tax year. Recently self-employed individuals may have a start-up period where this income threshold does not apply, or they can use an average over the tax year. Periods of maternity leave, sick leave, paternity leave, parental leave, adoption leave, and shared parental leave count as being in work for older children already enrolled in the scheme, but for new children, only the last 31 days of leave are counted. The household must have at least one child under 12, or a disabled child under 17. The scheme runs according to the school year, so disabled children are eligible until the September after their 16th birthday, while other children are eligible until the September after their 11th birthday. Parents pay money into a childcare account, and the government tops it up by 25% — for every £8 deposited, the government adds £2, which can be used to pay childcare providers. Parents who are due to start or return to work do not have to wait until they start work to apply. However, parents receiving Universal Credit may find that the childcare elements of that benefit offer more savings than Tax-Free Childcare, so they should compare options.
Parents can continue receiving Child Benefit for children aged 16 to 19 if they are in full-time education or approved training, but must notify HMRC before August 31 to avoid payments stopping, HMRC said. Child Benefit also provides National Insurance credits that count towards the State Pension, according to multiple reports. HMRC urged parents to check their eligibility using a tax calculator, even if they think they earn too much. Child Benefit can be backdated for up to three months, according to multiple reports. There is some confusion over the exact weekly rates after the April increase, with BirminghamLive potentially using outdated pre-increase figures of £26.05 and £17.25, but the confirmed rates from multiple sources are £27.05 and £17.90. Parents should verify the current rates on the official GOV.UK website.