These tables outline findings from 2 short surveys carried out by HMRC to understand Tax-Free Childcare (TFC) customers use of formal childcare (paid-for childcare) in 2020 and 2021, and their expected use in the school year starting in 2021.
The surveys were carried out to help HMRC forecast TFC use and to understand TFC customers’ intentions for longer term formal childcare.
They included questions on:
- formal childcare use in June and July 2021 compared to before the first COVID-19 lockdown in March 2020
- expected formal childcare use in the next academic year (August/September 2021)
- formal childcare use in the school summer holidays
- workplace flexibility towards childcare
We ran 2 short surveys:
- TFC customers who had a TFC account for their child who was 2 and under
- TFC customers who had children aged between 5 and 9
These age groups were chosen to explore change in childcare use where we would expect it to be fairly stable.
Although we cannot state that all changes to childcare across the 2 surveys can be attributed to the impact of COVID-19, we can assume that it is a key driver behind these changes, particularly given workplace flexibility/changes and informal childcare availability were often given for reasons for expected change.
TFC Customers included in the sample were those who had used their TFC account (made a payment) between 1 January 2020 and 31 March 2020.
There was a 18% response rate for the 0 to 2 survey (1,777 responses) and a 17% response rate for the 5 to 9 survey (1,692 responses).
Results
TFC customers with younger children are more likely to be using the same amount or more formal childcare now (June/July 2021) compared to before the March 2020 lockdown. The reasons for this change is due to informal childcare not being available or not being comfortable using informal childcare, and working more hours.
TFC customers with older children are more likely to be using less or to have stopped using formal childcare now (June/July 2021) compared to before the March 2020 lockdown. The main reasons that TFC are using less formal childcare are work based: being able to work from home and have child with them and not having a commute.
The majority of TFC customers plan on using formal childcare in the 2021 to 2022 academic year; 16% of TFC customers with younger children and 25% of TFC customers with older children state that COVID-19 has impacted these plans. TFC customers with younger children are more likely to be using more formal childcare as a result of COVID-19 and customers with older children less formal childcare.
The majority of TFC customers with older children planned to use paid-for childcare during the summer holidays (61%) with most (79%) planning to use a holiday club or playscheme.
Compared to the survey carried out in 2020, TFC customers reported having greater flexibility in work to help with childcare arrangements. TFC customers with older children are more likely to be able to adopt flexible working in the future compared to those with younger children (44% compared to 37%).
