HMRC announce that Tax-Free Childcare is a new government scheme to help working parents with the cost of childcare.
Parents will be able to open an online account, which they can use to pay for childcare from a registered provider.
For every £8 a parent pays in, the government will pay in extra £2. Parents can receive up to £2,000 per child, per year, towards their childcare costs, or £4,000 for disabled children.
The scheme will be available for children up to the age of 12, or 17 for children with disabilities.
To qualify, parents will have to be in work, and each earning at least £115 a week and not more than £100,000 per year.