If you have children under 12 attending nursery, after-school clubs, playschemes, or with a childminder, or if you’re considering summer camps, consider opening a tax-free childcare account. The government boosts your savings in the account by 25%, up to £2,000 per child annually (or more for disabled children). For instance, £8,000 saved is topped up to £10,000.

Funds in the account are used to pay registered childcare providers approved by Ofsted. Contributions aren’t limited to parents; relatives like uncles, aunts, grandparents, and others can also contribute. The government has observed that many eligible families haven’t yet opened accounts, so employers can encourage staff to take advantage of this benefit.

Please note, parents aren’t eligible if either has adjusted net income exceeding £100,000 for the current tax year.