||<p>Tax-Free Childcare is limited to families where parents earn under £100,000 per
year. The £100,000 per parent cap on Tax-Free Childcare ensures that support is targeted
at the working families who require the most support in order to return to work or
work more.</p><p> </p><p>The £100,000 limit was announced at Autumn Statement 2015
and legislated for in 2016 because it is simple for parents to understand their eligibility,
and because it aligns to an existing boundary in the tax system. The government published
its final impact assessment of the introduction of Tax-Free Childcare, including the
setting of an upper income limit at £100,000 per parent, in March 2017 (<a href="https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/652939/Tax-free_childcare_Impact_Assessment-March_2017.pdf"