Whichever party wins the next election, it seems certain that there will be an overhaul of the way families can claim help with childcare costs.
At present there are a number of government-backed schemes designed to help working parents pay for childcare ? such as childcare vouchers and tax credits (see below). While this help is primarily aimed at those on lower incomes, many middle-class families have benefited too ? although this may soon change if Gordon Brown’s latest plans are enacted.
The Prime Minister has said he wants to scrap tax relief on these childcare vouchers and use the money saved to fund nursery places for two year-olds instead. This is because of concern that a significant proportion of the 340,000 families claiming these vouchers are higher-rate taxpayers, and money spent on this scheme could be better focused on giving a helping hand to younger children from poorer backgrounds.
