HM Revenue and Customs (HMRC) has issued an urgent alert to parents across the United Kingdom, warning that thousands of households with children who have a disability could be missing out on significant financial support.
Substantial Savings on Offer
The government's tax department took to social media platform X, formerly Twitter, to highlight that eligible families could be forgoing up to £4,000 per year for each child with a disability. For children without a disability, the scheme still offers a generous £2,000 per year per child.
This support comes through the Tax-Free Childcare scheme, where the government contributes £2 for every £8 that parents pay into an online account. This money can then be used to cover the costs of approved childcare providers, including registered childminders, nurseries, nannies, and after-school clubs.
Eligibility and Application Process
To qualify, families must open a Tax-Free Childcare account, a process HMRC states takes around 20 minutes. Eligibility depends on several factors, including employment status, income, the child's age and circumstances, and immigration status.
Generally, you and your partner (if you have one) must be in work, on sick leave, or on annual leave. If you are not working, you may still qualify if your partner is employed and you receive certain benefits, such as Carer’s Allowance, Incapacity Benefit, or contribution-based Employment and Support Allowance.
For most children, the scheme is available until the 1st of September following their 11th birthday. However, for a child with a disability, the support is extended. They remain eligible until the 1st of September after their 16th birthday, provided they receive a qualifying disability benefit.
Specific Criteria for Children with Disabilities
The enhanced £4,000 annual support is available for a disabled child if they are in receipt of one of the following:
- Disability Living Allowance
- Personal Independence Payment
- Armed Forces Independence Payment
- Child Disability Payment (Scotland only)
- Adult Disability Payment (Scotland only)
Alternatively, a child is also eligible if they are certified as blind or severely sight-impaired. The child must usually live with the applicant, and while adopted children qualify, foster children do not.
HMRC is encouraging all parents, particularly those caring for a child with additional needs, to review their eligibility for this substantial financial support, which could make a significant difference to family finances.
