In particular, the Tax Free Childcare (TFC) scheme can be used to help pay not just for regular childcare during term time, but also for holiday clubs etc. during the upcoming Easter holidays.

Under TFC:

• Parents set up an online account which they use to pay for their childcare. 
• Contributions into this account are topped up with the equivalent of basic rate tax by the Government – i.e. for every £8 parents put in, the Government will add £2.
• The maximum government top-up is £500 per quarter for each child, or £1,000 per quarter if the child is disabled.

The funds in the TFC account can be used to pay for childcare by accredited providers who have signed up to the scheme. This can apply to nurseries, holiday clubs, out of school clubs, childminders and sports activities.

Parents can pay into their childcare account regularly throughout the year to ‘save up’ to pay for childcare during school holidays if they choose. 

There are however some conditions to be aware of when it comes to TFC:

• There is a minimum earnings requirement – parents have to earn at least the national minimum wage / living wage for 16 hours a week on average.  In the case of a couple, both parents have to meet this requirement.
• Children only qualify up to the age of 11 (16 if they are disabled).
• If either parent has adjusted net income of more than £100,000, TFC is not available.

More information on TFC can be found on GOV.UK.