Fake Childcare Subsidy Scams in the United Kingdom
In the UK, scammers posing as Tax-Free Childcare or local authority childcare subsidy administrators tell parents a release or registration fee must be paid before approved funding is paid out.
Part of: Fake Childcare Subsidy Scam
Last reviewed: 13 July 2026
The UK's genuine Tax-Free Childcare scheme and various local authority childcare subsidy or voucher programmes never charge parents a fee to register or receive approved funding, the government contribution is added automatically once an account is set up correctly. Scammers exploit confusion around these schemes, particularly among parents applying for the first time, by posing as scheme administrators.
Contact usually comes by phone, text, or email claiming a parent's application has been approved but a registration, processing, or release fee must be paid first, often urgently, before funding can be transferred. Because the real scheme genuinely involves online account setup and some administrative steps, the fake version can sound plausible to a parent unfamiliar with exactly how Tax-Free Childcare works.
How this scam works on the United Kingdom
A parent receives a call, text, or email claiming to be from HMRC's Tax-Free Childcare service or a local council childcare subsidy team, stating their application has been approved and a payment is needed to release or unlock the funds into their childcare account. The message may include a link to a fake gov.uk-style page asking for bank details or a card payment. Some versions target parents who have genuinely applied for a real scheme, timing the fake contact to arrive around when a real decision would normally be expected, increasing its credibility.
Common red flags
- You're told a fee is required before an approved government childcare subsidy will be paid out
- Contact claims to be from HMRC or a council but arrived by unsolicited text, email, or call
- A link leads to a page that resembles gov.uk but is on a different domain
- You're pressured to pay quickly to avoid losing the approved funding
- The message asks for full bank details or a card payment rather than directing you to log in to your own government gateway account
- You did not initiate contact and the message references an application you don't recall completing in that form
How to protect yourself
- Remember that Tax-Free Childcare and legitimate council subsidy schemes never charge a fee to release approved funding
- Log in to your childcare account only through the official gov.uk website, typed directly rather than via a link
- Verify any claimed contact by calling HMRC or your local council using a number from their official website, not one provided in the message
- Never give bank or card details in response to an unsolicited childcare subsidy message
- Check the sender's email domain matches an official gov.uk address
- Discuss unexpected childcare subsidy messages with your council's family information service before acting
How to report it
- Report suspicious HMRC-related messages by forwarding them to [email protected] (emails) or 60599 (texts)
- Report the scam to Action Fraud at actionfraud.police.uk or by calling 0300 123 2040
- Report it to your local council's childcare or family information service if it referenced a real application
- Report a fake gov.uk-style website to the National Cyber Security Centre via ncsc.gov.uk
Frequently asked questions
Does Tax-Free Childcare ever require an upfront fee?
No, Tax-Free Childcare adds a government top-up automatically once your online account is correctly set up and topped up with your own contribution, there is no separate release or processing fee.
How do I check if my childcare subsidy application is genuinely approved?
Log in directly to your childcare account through gov.uk, typed into your browser rather than via a link in a message, to see your actual application status.
I already paid a fee after being told my funding was ready, can I get it back?
Contact your bank or card issuer immediately to report the payment as fraudulent and ask about a chargeback or reversal, and report the scam to Action Fraud. Recovery may depend on the payment method and how quickly it's reported.
Why did the scam message seem to know I had actually applied for childcare support?
Some scammers send generic messages timed to coincide with common application periods, so it can feel targeted even without any real knowledge of your specific application. Don't treat apparent familiarity as proof of legitimacy.
Who can I contact if I'm unsure whether a childcare subsidy message is genuine?
Contact your local authority's family information service or HMRC directly using contact details from gov.uk, not from the message itself, before responding or paying anything.