Free childcare allowance up to £2,000 child-tax-credit-280

Thanks to an online government scheme, nearly two million families are set to benefit from a tax-free childcare allowance that will be worth up to £2,000 per child.

The online scheme, affecting children up to the age of 12, will come in from September next year and will mean twice as many parents are eligible for support, including the self-employed.

Currently, employees of participating companies can reduce their childcare costs through a tax-free voucher scheme but only about 5% of UK employers and 450,000 families are signed up to it.

The Family Childcare Trust says the average weekly cost for 25 hours of care for a child under the age of two is £109.89.

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