Families affected by the coronavirus pandemic and who receive government funded childcare support will continue to get financial support after an extension announced by the Government.
Working parents or carers who are eligible for Tax-Free Childcare or 30 Hours Free Childcare, but who have temporarily fallen below the minimum income requirement due to the coronavirus pandemic, will continue to receive financial support - with the extension meaning it will now be until October 31.
The temporary changes were announced in May to ensure critical workers would still be eligible for childcare offers if their income changed due to Covid-19.
HMRC has confirmed that critical workers who may exceed the income threshold for the 2020-21 tax year, as a result of working more to play a vital role in combating the coronavirus pandemic, would continue to receive support this tax year.
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.”
Tax-Free Childcare, which is delivered by HMRC, enables families to receive a £2 government top-up for every £8 they pay into their child's account.
This is 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.
The 30 Hours Free Childcare scheme is provided to eligible three to four year olds in England by the Department for Education (DfE).
HMRC said nearly 350,000 children benefited from 30 hours in January 2020 alone.
The Department added that the DfE has seen more than 55,000 parents apply for 30 hours places since the start of lockdown restrictions.
To continue to receive the financial support for Tax-Free Childcare and 30 Hours Free Childcare, parents and carers will need to reconfirm eligibility every three months.
Meanwhile, parents and carers in receipt of the childcare element of Working Tax Credits who have continued to pay childcare fees they have incurred, despite their children being unable to access childcare due to Covid-19, are being told they must notify HMRC if they expect this to continue beyond September 7.
After this date, HMRC will no longer pay the childcare element for those who are in this position.
Should claimants see their childcare stop, or the costs for their childcare decrease or end, then they should update HMRC as soon as possible.
Such changes can be reported by parents and carers via telephone - by calling the tax credits helpline on 0345 300 3900.
