Support for working families affected by coronavirus (COVID-19) given an extra boost

Families that benefit from government-funded childcare support were given a boost today as the government announced that they would not lose out due to coronavirus (COVID-19).

Working parents or carers who are eligible for Tax-Free Childcare or 30 hours free childcare but have temporarily fallen below the minimum income requirement as a result of the pandemic will continue to receive financial support until 31 October 2020.

Critical workers who may exceed the income threshold for the 2020 to 2021 tax year as a result of working more to play a vital role in tackling the coronavirus (COVID-19) pandemic will continue to receive support this tax year.

Through Tax-Free Childcare, delivered by HMRC, families will receive a £2 government top-up for every £8 they pay into their child’s account, up to the value of £2,000 per child, or £4,000 per disabled child in financial support.

The money can be used towards the cost of qualifying childcare for a child up to the age of 11, or 17 for a disabled child.

HMRC’s Deputy Chief Executive and Second Permanent Secretary, Angela MacDonald, said:

HMRC has been providing vital financial support to families during a time when it has been needed most and we will continue to help them as they gradually transition back to a normal life.

We want to make sure families will not be adversely affected by any abrupt change in circumstances, which is why we have extended available support through Tax-Free Childcare to give families that extra boost.

The Department for Education (DfE) provides 30 hours free childcare to eligible 3 to 4-year-olds in England, with more than 600,000 3- and 4-year-olds benefitting from this offer in the first 2 years of delivery and nearly 350,000 children benefitted from 30 hours in January 2020 alone.

DfE has seen more than 55,000 parents applying for 30 hours places since the start of lockdown restrictions, which demonstrates how essential this support is and why parents’ eligibility must be protected.