Martin Lewis issues urgent warning to parents missing out on £2,000 free childcare

Martin Lewis has issued a warning to parents across the UK who could be missing out on free childcare.

His MoneySavingExpert website alerted families that they could receive up to £2,000 a year in childcare support.

If the child has a disability, the total could rise up to £4,000 a year in support.

For every 80p you put in your tax-free childcare account, the state adds 20p.

Breaking this down, this means you can get up to £500 every 3 months for each of your children, and up to £1,000 every 3 months if a child is disabled.

MSE said this “essentially gives you basic-rate tax back on your bill.”

Am I eligible for tax-free childcare?

According to the government, your eligibility depends on:

Your child must be 11 or under and usually live with you. They stop being eligible on 1 September after their 11th birthday.

Adopted children are eligible, but foster children are not.

If your child is disabled you may get up to £4,000 a year until they’re 17. They’re eligible for this if they:

You’re expected to earn at least £1,853.28, which is the National Living Wage for those over 23. Your partner must earn this too.

You cannot get tax-free childcare at the same time as claiming Working Tax Credit, Child Tax Credit, Universal Credit or childcare vouchers.

Note that tax-free childcare is different to Child Tax Credit which we have more information about here.