The Government has introduced a tax-free childcare initiative that is due to be phased in during autumn next year. At first parents of children under five will receive 20 per cent of yearly childcare costs of up to £6,000 per child. It will be extended to families with children under 12 years of age afterwards. To be eligible, both parents will need to be in work, and each earn under £150,000 a year, and not already receive tax credits and, when introduced, Universal Credit. Mr Djanogly said: If Britain is going to succeed in the global race we must help those who work hard and want to get on. Too many families find paying for childcare tough and are often stopped from working the hours theyd like. That is why this Government is introducing tax free-childcare, saving a typical family with two children up to £2,400 a year. This is a boost direct to the pockets of hard-working families in what will be one of the biggest measures ever introduced to help parents with childcare costs.