Helping working families save money on childcare costs

Fife Council, Citizens Advice and Rights Fife and Fife Gingerbread are partnering to spread the word that help is available for families through Tax-Free Childcare.

Tax-Free Childcare supports working families, including the self-employed, with childcare costs. If a working parent is earning at least the National Minimum Wage for 16 hours a week on average and under £100,000 per year, they could save up to £2,000 a year per child or £4,000 if their child is disabled.

Gary Peattie, Childcare Services team manager explained: “We’re urging families paying for childcare to make sure they’re not missing out on money they should be getting.

“If you use childcare, paying your approved provider via the Tax-Free Childcare scheme can save you money. For every £8 you deposit into the account, the Government will add £2. These funds are then used to pay your childcare provider directly from the account.”

Parents can use Tax-Free Childcare to pay for childcare from an approved provider:

Fife Gingerbread Strategic Manager, Laura Millar said: “Being a working parent is challenging in lots of ways, and particularly so for lone parents. The support through Tax-Free Childcare, can ease the financial burden for working families which will have a positive impact on the wellbeing of the whole family.

"We are delighted to support this campaign to raise awareness, so make sure if you know a working parent paying for childcare that you encourage them to check if they are eligible.”

Audrey Cunningham, Benefit Take Up Campaign Lead for Citizens Advice & Rights Fife is seeking to specifically reach families who are not receiving Universal Credit, Tax credits or Childcare Vouchers from their employer.

Audrey stated: “Consider Tax-Free Childcare as a payment method to your childcare provider in order to save some money each month or the additional top-up can help towards increased childcare costs during school holidays. If you are currently paying £400 per month for your childcare, you could reduce what you need to pay by around £100 per month, just by changing your payment method.”

For more information go to Local organisations can also help you decide and apply go to to find out more.