This rises to £1,000 every quarter, or £4,000 per year per child, if the child has a disability.
To take advantage, working parents and carers need to set up an online childcare account for their child or children. For every £8 they pay in, the Government will top this up by £2, up to a maximum of £2,000 a year, or £4,000 if the child has a disability.
It can then be used to pay for childcare including childminders, nurseries and nannies, playschemes, before and after school clubs, and holiday clubs, if providers are signed up to the scheme.
Councillor Jacqui Coogan, the City of Wolverhampton Council's Cabinet Member for Children, Young People and Education, said: "Accessing childcare gives your child the chance to learn, play and make new friends and the opportunity to develop and master new skills – and of course it also helps working parents and carers to juggle their careers with their caring responsibilities.
"Thousands of families across Wolverhampton are already taking advantage of the national tax free childcare scheme, helping them save money on childcare, and I would encourage other working parents and carers to find out if they are eligible, too."
To be eligible, parents and carers must be working at least 16 hours a week, earning at least the National Minimum Wage or National Living Wage and up to £100,000 per year. Tax free childcare cannot be claimed at the same time as Working Tax Credit, Child Tax Credit or Universal Credit.
The child is eligible until the September after their 11th birthday, or until their 17th birthday if they have a disability, and parents and carers must reconfirm their eligibility every 3 months.
For more information, please visit Childcare Choices.
