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Breaking News March 14th 2018 Childcare scheme gets six-month reprieve

14 Mar 2018

Education Secretary Damian Hinds made the concession during a Commons debate yesterday March 13th.

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Gordon Brown responds to concerns over childcare vouchers


The Prime Minister said:

"I can see that Childcare Vouchers are a big concern to many of you, so let me take this opportunity to clear a few things up.

Firstly, no one who is currently using the scheme will be affected in the next 5 years, so please don't worry about any sudden changes. We are phasing in the changes so that families who currently benefit don't lose out in the
next Parliament.

Second, low and middle-income working parents will be able to benefit from childcare support through tax credits that are worth on average £68 per week for 470,000 families - much more generous than tax relief on vouchers.

And third, we are not actually abolishing the childcare vouchers. What will be happening is the Treasury will be phasing out the tax and national insurance relief employees receive for childcare vouchers, but companies will still be able to offer childcare vouchers to the people they employ and in fact, we expect many of them will continue to provide support for

We are making these changes because we feel that the tax relief is currently badly targeted. Around a third of the benefit for ESC* goes to the 6% of parents who pay tax at the higher rate. But more importantly, we want to use the money to extend free nursery places to many thousands more 2 year olds**. These nursery places are really popular with parents and they give children the very best start in life - helping to achieve a fairer society in which everyone can thrive."

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