The tax-free childcare scheme has been open to all working parents across the UK with children under 12 years of age, or 17 if disabled, since February 2018, and replaces the childcare voucher scheme which was closed to new entrants on 4 October 2018. Those already in the childcare voucher scheme can remain in that scheme for as long as their employer offers it or they can transfer to the tax-free childcare scheme, but they must stay with their current employer if they wish to stay in the older scheme.

Places allocated to children of employees in workplace nurseries are completely exempt from tax and national insurance contributions (NICs) if they meet certain conditions.