Free Childcare Hours and Tax-Free Childcare: How To Use Both in 2026
Many working parents in England can use Free Childcare for Working Parents and Tax-Free Childcare together. The free hours reduce the bill first, then Tax-Free Childcare can help with the remaining eligible charges your provider asks you to pay.
What Free Childcare Covers in 2026
Working-parent entitlement. GOV.UK says eligible working parents of children aged 9 months to 4 years old can get 30 hours of free childcare per week for 38 weeks of the year.
Stretched hours may be possible. Some providers let you use fewer hours each week across more weeks of the year. Ask your provider how they apply funded hours before calculating your monthly cost.
Extra charges can remain. Meals, consumables, extra hours, holiday cover, and provider fees may still leave a balance to pay.
Where Tax-Free Childcare Fits
Use Tax-Free Childcare for the part of the bill you still need to pay to an approved provider. For every £8 you add, the government adds £2, up to the scheme cap.
You can use the account for nurseries, childminders, nannies, after-school clubs, play schemes, and holiday clubs if the provider is approved and signed up.
You must sign in every 3 months to confirm your details are up to date, so set a reminder at the same time you review your childcare invoice.
Planning Example
If your provider reduces your invoice using funded hours and the remaining eligible bill is £400, you would usually pay £320 into your Tax-Free Childcare account and the government would add £80. The account can then pay the £400 provider bill.
The important step is to calculate Tax-Free Childcare on the remaining bill, not on the full cost before funded hours are applied.
Checklist Before You Apply
Confirm your provider offers funded hours and accepts Tax-Free Childcare payments.
Ask for a monthly estimate after funded hours, meals, extra sessions, and holiday arrangements are included.
Check both parents meet the work and income rules if you live with a partner.
