Martin Lewis warns 800,000 parents are missing out on up to £2,000 every year

Martin Lewis has warned how thousands of parents are missing out on up to £2,000 a year in free childcare. The help is issued through the Government tax-free childcare scheme.

Parents who are eligible can open an online account, and for every £8 you pay in, the Government automatically adds in £2. If you’re eligible, you can get up to £500 every three months for each of your children - so £2,000 over 12 months.

For disabled , the maximum amount you could get rises to £4,000. The money must be spent on a registered childcare provider, such as nurseries, nannies, after school clubs and play schemes.

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flagged the tax-free childcare scheme on his latest Martin Lewis Money Show Live broadcast on last week, where he explained how 800,000 parents are missing out.

He said: "It's only for under 12s, or under 16s if the child has a disability. Do check whoever you're paying would take tax-free childcare payments. Almost all of them do, but it's worth checking.

"You must both be working, or if you're a single parent, you must be working, and you need to earn the equivalent of 16 hours at national minimum wage – which depends on your age – but for someone aged over 22, is around £850 or more a month.

"But if one of the parents is earning over £100,000 a year, you're not eligible. Your neighbours might be earning £99,000 each in a couple. They get it, you don't. Ridiculous system."

There are some circumstances where you can claim tax-free childcare if you're not working. For example, if you're on sick leave, annual leave, on shared parental, maternity, paternity or adoption leave, or if you're in a couple and one of you is working, and the other claims certain benefits.

You can open a tax-free childcare account for free through the . But not everyone necessarily needs to pay for childcare in the first place. For example, parents can claim 15 or 30 hours free childcare a week, depending on the age of their child.

Working parents of nine-month-olds and two-year-olds can access 15 hours of free childcare a week and this will rise to 30 hours from September 2025. You must be in work and earning the equivalent of the national minimum wage or for 16 hours a week, but less than £100,000 a year.

Finally, if you claim and you're in work, you can claim back up to 85% of childcare costs, up to a maximum of £1,031.88 for one child or £1,768.94 for two or more children.

Finally, if you claim and you're in work, you can claim back up to 85% of childcare costs, up to a maximum of £1,031.88 for one child or £1,768.94 for two or more children.