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Prime Minister reverses decision to scrap childcare vouchers
4 December 2009
The Prime Minister annouced yesterday that he has reversed the decision to scrap childcare vouchers and employer-supported childcare. However, the continuation of this type of support will only continue on the basic lower rate of tax at 20 per cent, meaning there will only be one level of support for all.
Higher rate tax payers, who currently receive the tax relief at 40 per cent, will continue to do so as long as they are a member of the scheme. From April 2011, any new entrants will only receive the tax relief from vouchers at the 20 per cent rate, even if they are higher rate tax payers.
The decision to keep childcare vouchers will have a direct impact on the expansion of free places for two-year olds. These will no longer be extended to 250, 000 children, as originally stated, but will increase more slowly and go to fewer families.
News
Daycare Trust is 25 years old!
Join with us to celebrate our anniversary year.
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