The government’s new tax-free childcare scheme will launch on 28 April 2017.
The scheme will be phased in gradually throughout 2017, with parents of children under the age 2 able to enter the scheme first.
Eligible parents who open a tax-free childcare account will receive £2 from the government for every £8 they pay in.
The scheme is available to working parents with children aged under 12 or under 17 for children with disabilities.
The maximum government top up is £2,000 per child per year or £4,000 for children with disabilities.
From September 2017, parents of 3 and 4 year old children will be able to apply for 30 hours free childcare.
David Gauke, chief secretary to the Treasury, said:
“This government is on the side of working families and our childcare support will cut thousands of pounds off bills for millions of households, as well as supporting parents to return to or remain in work.”
For any help or advice with financial planning talk to RPD