Finding the right childcare for your child is important and can be a stressful task.
The balance between ensuring you are getting the best for your child without eating too heavily into the family budget can be a tricky one.
But according to Money Saving Expert Martin Lewis, there could be a huge tax relief available that thousands of families are not currently claiming.
The Liverpool Echo reports the money-saving website has revealed only 250,000 families out of an eligible 1.5 million are claiming tax-fee childcare.
DWP say working families on Universal Credit will get £630 extra from Saturday April 6
Tax-free childcare gives eligible families up to £2,000 a year per child towards childcare costs, for free.
This can help cover the costs for families who apply to pay for after school and holiday clubs for older children, and also nurseries and play groups for younger ones.
Here's everything you need to know about tax-free childcare:
You may not even need to pay for childcare
If you have a three to four-year-old you are eligible for 30 hours of free childcare.
Working households are also entitled to double that as long as you and your partner, if you have one, each earn an average of at least £131 a week.
Universal Credit childcare help
If you're a single parent and working or if you're both working as a couple and you pay for childcare, you could get 85% of your childcare costs back through universal credit.
Martin says if you have family income under £40,000 a year you can see if how much you are entitled to using their Universal Credit and Benefits Calculator.
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£2000 boost from tax-free childcare
For every 80p you put into your tax-free childcare account, the Government will add 20p.
This scheme will help pay for up to £10,000 of childcare per child each year.
You also get an extra £2000 per child every year.
Tax-free childcare is open to all qualifying parents, even if you're self-employed, unlike childcare vouchers.
However, the scheme is only available to parents of children up to and including the age of 11.
Childcare vouchers vs Tax Free Childcare
The tax-free childcare scheme was brought in to replace the childcare vouchers scheme, which closed to new applicants on October 4, 2018.
However, if you signed up to the scheme before it closed and you're with the same employer you can continue to get them.
Whether you'll be better off on the vouchers or tax free scheme depends on how much you earn and pay in tax and childcare.
But once you make the switch to tax-free childcare you can't go back to vouchers.
To set up a childcare account or for more information, head to Money Saving Expert here.
DWP say working families on Universal Credit will get £630 extra from Saturday April 6
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