In April 2017 the Government initiated the tax-free Childcare Scheme. The previous voucher scheme is now closed to new members. New members are welcome to join the Childcare Scheme. You cannot be a member of both schemes at the same time.
The Government-run scheme works like an online account. You pay money in an account from your net pay, this means it is deducted after tax and National Insurance.
If you are eligible it offers £2,000 of childcare costs, per child, per year for children under 12 (or under 17 if they have a registered disability). For every 80p you pay in, the Government will top up an extra 20p. This is equivalent of the tax most people pay - 20%. The Government will top up the account with 20% of childcare costs up to a total of £10,000 - the equivalent of up to £2,000 support per child per year (or £4,000 for disabled children).
More information is available from the Government websites: