Another tax-free childcare glitch, this time affecting parents: Early Years Alliance responds

Commenting on the latest glitch in the tax-free childcare system, Neil Leitch, chief executive of the Early Years Alliance, said:

"Only last week we reported a technical glitch on the tax-free childcare system which directly affected childcare providers, and today parents are left wondering where their payments have gone. These problems must be ironed out urgently. Childcare providers are about to start a new term and they cannot afford to not be paid, and parents cannot afford to pay twice.”  

Paul Wadsworth, a parent who uses the online tax-free childcare account service has been affected by his monthly payment going missing. He said: "I have a regular payment set up to go into the childcare account which then goes on to the nursery. The first I knew of an issue was a text from HMRC saying my payment to our nursery had failed due to insufficient funds. My bank assured me HMRC recieved my money on the 16 August but nothing has been credited to my account. After three phone calls to the HMRC Childcare Helpline they advised that they are aware of the problem but have no timescale for a fix and that lots of people have been affected. They said I could pay in by debit card but I'd rather wait until they find my original money as I'm not sure I trust it could credit. Luckily the nursery has been understanding until now, but this is two weeks since the issue started and no resolution in sight." 


For further information about last week's tax-free childcare glitch:

About the Early Years Alliance

  • The Early Years Alliance is the largest and most representative early years membership organisation in England. A registered educational charity, it also provides high-quality affordable childcare and education to support children and families in areas of deprivation throughout the country.
  • The Alliance represents 14,000 members and supports them to deliver care and learning to more than 800,000 families every year. We deliver family learning projects, offer information and advice, produce specialist publications, run acclaimed training programmes and campaign to influence early years policy and practice.
  • The Alliance website is