Working families across Scotland are being encouraged to take advantage of a government scheme that could help reduce childcare costs ahead of the Easter holidays.
HM Revenue and Customs (HMRC) says more than 36,100 families in Scotland saved money on childcare in December 2025 by using Tax-Free Childcare.
The scheme allows eligible families to save up to £2,000 per year per child under the age of 11, or up to £4,000 for disabled children under 16.
For every £8 paid into a Tax-Free Childcare account, the government adds an extra £2.
Latest figures show £46.6 million was added to accounts in December alone, helping cover childcare costs for almost 660,000 children across the UK.
The scheme can be used to pay for a wide range of approved childcare, including holiday clubs, childminders and wraparound care during term time.
Families can save up to £500 every three months per child, or £1,000 for disabled children, and any unused money can be withdrawn at any time.
To qualify, parents must be working and earning at least the National Minimum Wage for an average of 16 hours a week, but no more than £100,000 per year each.
They must also not be receiving Universal Credit or childcare vouchers.
Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “£2,000 a year off childcare bills can make a big difference to household expenses. There are plenty of childcare providers to choose from to suit your needs and your children’s interests – sign up today to make those savings for the Easter school holidays and for your plans for the rest of the year. Go to GOV.UK to find out more.”
Parents are reminded they need to open a separate account for each child and must reconfirm their details every three months to continue receiving the government top-up.
The scheme can also be used alongside free childcare hours, depending on eligibility.