Tax-free childcare will replace employer-supported childcare

In autumn 2015, employer-supported childcare will be replaced by a tax-free childcare scheme. However, employees may choose to remain in those schemes or switch to tax-free childcare.

The new scheme is designed to help families and the Government will provide 20 per cent of working families’ childcare costs (subject to an annual limit of £1,200 per child). Children up to the age of five and disabled children under the age of 17 will be eligible.