Tax-Free Childcare and Child Benefit: What Can You Claim?
Reviewed against the official guidance linked in this article. Rates and eligibility can change. Check the linked official sources for your circumstances. See our editorial policy.
You can receive Child Benefit and Tax-Free Childcare together if eligible. Check the 2026/27 rates, income limits and top-up calculation.
You can receive Child Benefit and Tax-Free Childcare together if you meet each scheme's conditions. Child Benefit helps with raising a child. Tax-Free Childcare contributes towards eligible childcare bills.
What each scheme pays in 2026/27
| Child Benefit | Tax-Free Childcare | |
|---|---|---|
| Support | £27.05 a week for the eldest or only child, £17.90 for each additional child | Government adds £2 for every £8 you pay into the childcare account |
| Maximum childcare top-up | Not linked to childcare bills | £500 per child every three months, up to £2,000 a year; double for a disabled child |
| Working requirement | You do not have to work | Normally each parent must meet an earnings test, with exceptions |
| Income rule | A tax charge starts above £60,000 adjusted net income | Neither parent can expect adjusted net income above £100,000 |
| Child's age | Usually under 16, or under 20 in qualifying education or training | Usually until September after their 11th birthday, or until September after their 16th birthday if disabled |
See the official Child Benefit rates and Tax-Free Childcare rules. Residence, responsibility for the child and other eligibility conditions also apply.
The childcare top-up is 20% of the bill
If a provider's bill is £1,000, you pay £800 into the account and the government adds £200. The £200 is 25% of your £800 contribution, but 20% of the £1,000 bill. Applying 25% to the full provider bill overstates the support.
The cap applies every three months for each child. A large bill in one period does not automatically let you use unused support from another. Your provider must be signed up to the scheme and you normally need to reconfirm eligibility every three months.
Earnings eligibility
For someone aged 21 or over, the usual minimum expected earnings are £2,643.68 over the next three months in 2026/27. This represents 16 hours a week at the National Living Wage. It is a three-month test, not an annual minimum. Different minimums apply to younger workers and apprentices.
Normally both partners must meet the working and earnings conditions. Exceptions can apply, including certain leave, caring circumstances and the first year of self-employment. Check the full eligibility guidance, particularly if your income varies or either parent's adjusted net income is near £100,000.
Worked example: two children
Sarah earns £38,000 and Tom earns £30,000. They have two eligible children and no other income or adjustments. Assume both meet all eligibility conditions, their childcare providers accept the scheme and bills are spread evenly through the year.
| Annual provider bills | Household contribution | Government top-up |
|---|---|---|
| Nursery: £800 a month, £9,600 a year | £7,680 | £1,920 |
| After-school care: £200 a month, £2,400 a year | £1,920 | £480 |
| Total: £12,000 | £9,600 | £2,400 |
Neither child's top-up reaches the quarterly cap. Child Benefit for two children is £44.95 a week. Over an illustrative 52 weeks that is £2,337.40, giving combined support of £4,737.40. Actual entitlement and payment dates can differ, including when a child becomes eligible part-way through the year.
Neither parent has adjusted net income above £60,000 in this example, so there is no High Income Child Benefit Charge. Where the charge applies, it can reduce or remove the cash value of Child Benefit. Read our Child Benefit charge guide.
If you receive Universal Credit
You cannot receive Tax-Free Childcare alongside Universal Credit. Eligible households can instead receive up to 85% of childcare costs through Universal Credit, subject to monthly limits and other rules. Check the current Universal Credit childcare guidance and a benefits calculator before changing schemes: moving can affect support beyond childcare.
Our salary calculator estimates payroll deductions. It does not calculate childcare eligibility, Child Benefit entitlement or the Child Benefit tax charge.