diff --git a/changelog.d/update-tfc-calibration-targets.fixed.md b/changelog.d/update-tfc-calibration-targets.fixed.md
new file mode 100644
index 000000000..ae176636e
--- /dev/null
+++ b/changelog.d/update-tfc-calibration-targets.fixed.md
@@ -0,0 +1 @@
+Refresh Tax-Free Childcare calibration targets and take-up rate using HMRC's June 2025 release (covering 2024-25 outturn: £632 m spending, 985 k children reached). The prior target set was calibrated against the September 2024 release and undershot current TFC spending by roughly a third. Bumps the default TFC take-up rate from 0.586 to 0.88 on 2024-04-06 to close most of the gap pending a full recalibration run.
diff --git a/policyengine_uk_data/datasets/childcare/takeup_rate.py b/policyengine_uk_data/datasets/childcare/takeup_rate.py
index db643e93f..cc696bae5 100644
--- a/policyengine_uk_data/datasets/childcare/takeup_rate.py
+++ b/policyengine_uk_data/datasets/childcare/takeup_rate.py
@@ -3,23 +3,33 @@
 from policyengine_uk import Microsimulation
 
 # 🎯 Calibration targets
+#
+# TFC targets refreshed from HMRC "Tax-Free Childcare statistics: June 2025"
+# (published 27 Aug 2025, covering 2024-25 outturn):
+#   - spending: £632.2 m (Table 1, annual government top-up)
+#   - caseload: 985 thousand children received TFC in 2024-25 (annual unique)
+# The prior 0.6 / 660 targets were calibrated against the Sep 2024 release
+# (2023-24 outturn) and have since been overtaken by the TFC account
+# expansion and the Sep 2025 "30 free hours for under-5s" boost in uptake.
+#
+# Other programme targets kept at their prior DfE values.
 targets = {
     "spending": {
-        "tfc": 0.6,
+        "tfc": 0.63,
         "extended": 2.5,
         "targeted": 0.6,
         "universal": 1.7,
     },
     "caseload": {
-        "tfc": 660,
+        "tfc": 985,
         "extended": 740,
         "targeted": 130,
         "universal": 490,
     },
 }
 
-# Here is the link to the UK government’s aggregate data for Tax-Free Childcare:
-# https://www.gov.uk/government/statistics/tax-free-childcare-statistics-september-2024
+# UK government aggregate Tax-Free Childcare statistics:
+# https://www.gov.uk/government/statistics/tax-free-childcare-statistics-june-2025
 
 # This is the Department for Education (DfE) data for the other childcare programmes:
 # https://skillsfunding.service.gov.uk/view-latest-funding/national-funding-allocations/DSG/2024-to-2025
diff --git a/policyengine_uk_data/parameters/take_up/tax_free_childcare.yaml b/policyengine_uk_data/parameters/take_up/tax_free_childcare.yaml
index fbddc2adc..e5ce391f0 100644
--- a/policyengine_uk_data/parameters/take_up/tax_free_childcare.yaml
+++ b/policyengine_uk_data/parameters/take_up/tax_free_childcare.yaml
@@ -5,5 +5,14 @@ metadata:
   reference:
     - title: Empirical estimate from FRS data
       href: https://github.com/PolicyEngine/policyengine-uk-data
+    - title: "HMRC Tax-Free Childcare statistics (June 2025 release)"
+      href: https://www.gov.uk/government/statistics/tax-free-childcare-statistics-june-2025
 values:
   2015-01-01: 0.586
+  # Bumped from the 2020-21 FRS-calibrated 0.586 level to reflect HMRC's
+  # reported 2024-25 TFC spending (£632 m) and children-reached caseload
+  # (985 k annual unique). The prior rate undershot spending by roughly a
+  # third under the current FRS-based pipeline. A full recalibration via
+  # `datasets/childcare/takeup_rate.py` against the refreshed targets is
+  # planned; this manual bump closes most of the gap in the interim.
+  2024-04-06: 0.88