18/02/2026
How Tax-Free Childcare Can Save You Money on School Holiday Childcare
School holidays are exciting for children, but for parents, the cost of childcare can quickly add up.
The good news? Tax-Free Childcare can reduce your school holiday childcare costs by 20%.
If you’re booking holiday camps like Barracudas, using Tax-Free Childcare (TFC) could save you hundreds of pounds across Easter and summer.
Let’s start with how it works.
What Is Tax-Free Childcare and How Does It Work?
Tax-Free Childcare is a UK government scheme that helps working families pay for registered childcare, including holiday clubs and camps.
Here’s how it works:
- For every £8 you pay into your Tax-Free Childcare account, the government adds £2.
- That’s a 20% top-up.
- You can receive up to £2,000 per child, per year (or £4,000 if your child has a disability).
The money can be used with approved providers like Barracudas.
Why Use Tax-Free Childcare for School Holidays?
School holidays often mean:
- Full-day childcare
- Multiple days per week
- Higher overall spend than during term time
Because Tax-Free Childcare applies to whatever you pay in (up to the annual cap), holiday periods are where families often see the biggest savings.
If you’re booking Easter, summer or half-term camps, this is where TFC really makes a difference.
Real-Life Savings: Barracudas Holiday Camps
Let’s look at exactly how much parents can save at Barracudas using Tax-Free Childcare.
Easter Holiday Camp Example (4-Day Week)
Current price: £205 for 4 days
Without Tax-Free Childcare: You pay £205
With Tax-Free Childcare:
- You pay £164 into your TFC account
- The government adds £41
- Total paid to Barracudas: £205
That means you pay:
- £41 per day
- Just £4.55 per hour
For full-day childcare packed with activities, that’s exceptional value.
Summer Holiday Camp Example (5-Day Week)
Current price: £240 for 5 days
Without Tax-Free Childcare: You pay £240
With Tax-Free Childcare:
- You pay £192
- The government adds £48
- Total paid: £240
That means you pay:
- £38.40 per day
- Just £4.26 per hour
Across multiple weeks in the summer, those savings can quickly add up.
How Much Could You Save Over a Year?
If you used Tax-Free Childcare for:
- One Easter week
- Two summer weeks
- One half-term week
You could easily save over £150–£300 per child per year, depending on how many weeks you book.
For families with more than one child, the savings double.
Is Tax-Free Childcare Worth It?
If you’re eligible, it’s one of the simplest ways to reduce school holiday childcare costs.
You’re not changing provider.
You’re not compromising on quality.
You’re simply using a government scheme designed to help working parents.
When your child is enjoying their time at Barracudas; making friends, trying new activities and coming home happily tired, it feels even better knowing you’ve made your childcare budget stretch further.
Frequently Asked Questions
Can Tax-Free Childcare be used for holiday camps?
Yes, as long as the provider is Ofsted registered, like Barracudas.
How much does the government add?
The government adds £2 for every £8 you pay in (20%).
Is there a yearly limit?
Yes — up to £2,000 per child per year (£4,000 for a disabled child).
Final Thoughts
School holiday childcare is a necessity for many working families. Tax-Free Childcare helps make it more affordable, especially during longer breaks like Easter and summer.
If you’re booking holiday camps, it’s not just worth considering, it’s worth acting on.