Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the effectiveness of the Tax-Free Childcare scheme in reducing childcare costs for working families.

Tax-Free Childcare (TFC) has been designed with the specific policy aim of supporting parents to return to paid work or work more. For every £8 parents pay into their childcare account, the Government adds £2 up to a maximum of £2,000 in top up per year for each child up to age 11 and up to £4,000 per disabled child until they are 16.

TFC covers a wide range of parents who may not be covered by other offers, and take-up has steadily increased since its introduction in 2017. During the 2024 to 2025 financial year, the government provided top-ups to approximately 826,000 families for 1,085,000 children, an increase of almost 100,000 families from the previous year.