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Childcare vouchers move is ‘robbing Peter to pay Paul’
CONTACT: DAYCARE TRUST PRESS OFFICE, 020 7840 3350, OUT OF HOURS 07736 311 082
Responding to the news that nine former Government Ministers have written to the Prime Minister urging him to rethink removing tax relief from childcare vouchers, Alison Garnham, joint Chief Executive of Daycare Trust said:
"We support extending the free childcare entitlement to an additional 250,000 two year-olds, but it is wrong to pay for it by abolishing tax relief on childcare vouchers.
"By abolishing tax relief on childcare vouchers the Government are simply robbing Peter to pay Paul. Childcare remains an expensive but essential commodity for many families, and Childcare Vouchers play an important role in helping parents meet these costs. Many families on modest incomes, including public sector workers such as Nurses benefit by as much as £1,195 per year. A basic rate tax payer can save £962 per year".
"This move will mean that we would effectively lose one of the few contributions employers make to childcare."
Who will lose out?
- Families with more than two children.
- Basic rate tax payers who are above the threshold for Working Tax Credit.
- Lone parents with older children.
- Families who save vouchers to pay for holiday childcare.
Ends.
NOTES TO EDITORS
To find out more call 020 7840 3375 or 07736 311 082.
Daycare Trust is the national childcare charity, campaigning for quality affordable accessible childcare for all and raising the voices of children, parents and carers. We advise parents and carers, providers, employers, trade unions and policymakers on childcare issues. We recognise that everyone is unique and we value difference in our communities. We listen to all views and are committed to act without prejudice.
Daycare Trust runs an information line (08458 726 251) on Monday, Wednesday and Friday from 10am-5pm. Parents can also visit www.daycaretrust.org.uk for information.
Daycare Trust is a member of the Campaign to End Child Poverty, www.ecpc.org.uk.
For further information, contact press office at Daycare Trust on 020 7840 3350, ext 217 (out of hours 07736 311 082).
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