Budget 2013 Reaction and Analysis: Childcare Scheme

 

In Autumn 2015, a new childcare scheme will be introduced to help working families with their childcare costs.

 

For families where both parents are in work, a 20% contribution will be available from the Government on up to £6,000 of childcare costs per year per child. This will be worth up to £1,200 per child. Families receiving support through Working Tax Credits/Universal Credit, or where one  parent has an income over £150,000, will not be eligible.

 

To start with, the scheme will be available to all children under 5 and gradually expand to include children under 12.

This scheme will replace the current system of Employer Supported Childcare, including the current ability for employers to provide up to £55 per week in tax free child care vouchers.

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