This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.guardian.co.uk/uk/2013/mar/19/working-parents-childcare

The article has changed 12 times. There is an RSS feed of changes available.

Version 0 Version 1
Working parents to be given up to £1,200 for childcare Working parents to be given up to £1,200 for childcare
(about 1 hour later)
Parents on joint incomes of up to £300,000 will be eligible for new tax-free childcare support worth £1,200 a year under a new scheme that will be one of the central measures in Wednesday's budget aimed at helping hardworking families.Parents on joint incomes of up to £300,000 will be eligible for new tax-free childcare support worth £1,200 a year under a new scheme that will be one of the central measures in Wednesday's budget aimed at helping hardworking families.
Under the plan parents will be eligible to receive 20% of their yearly childcare costs up to £6,000 a year. David Cameron and Nick Clegg hailed what the prime minister called "a boost direct to the pockets of hardworking families in … one of the biggest measures ever introduced to help parents with childcare costs". Under the plan, parents will be eligible to receive 20% of their yearly childcare costs up to £6,000 a year. David Cameron and Nick Clegg hailed what the prime minister called "a boost direct to the pockets of hardworking families in … one of the biggest measures ever introduced to help parents with childcare costs".
But the Resolution Foundation thinktank criticised the government for helping richer parents while failing to recognise the barriers faced by poorer families.But the Resolution Foundation thinktank criticised the government for helping richer parents while failing to recognise the barriers faced by poorer families.
Nick Clegg said: "I want to help every family to get on in life. Already we have created a million private sector jobs, put money back in people's pockets by cutting income tax, and extended free childcare entitlements for pre-school children.Nick Clegg said: "I want to help every family to get on in life. Already we have created a million private sector jobs, put money back in people's pockets by cutting income tax, and extended free childcare entitlements for pre-school children.
"Delivering tax-free childcare is the next step to ensuring all families can work and get on. The rising cost of childcare is one of the biggest challenges parents face and it means many mums and dads simply can't afford to work. This not only hurts them financially, but is bad for the economy too. This announcement of a £1bn investment in childcare will make sure it pays to work."Delivering tax-free childcare is the next step to ensuring all families can work and get on. The rising cost of childcare is one of the biggest challenges parents face and it means many mums and dads simply can't afford to work. This not only hurts them financially, but is bad for the economy too. This announcement of a £1bn investment in childcare will make sure it pays to work.
"An extra £1,200 for each child will make a real difference to families who find themselves constantly worrying about how to juggle their family budget. And extending support for working families on Universal Credit will make sure it is worth working extra hours even if you're on low wages."The £750m scheme, which will not be introduced until the autumn of 2015, will initially apply to children under the age of five, providing help to 1.3 million families. It will eventually be extended to include children up to the age of 12."An extra £1,200 for each child will make a real difference to families who find themselves constantly worrying about how to juggle their family budget. And extending support for working families on Universal Credit will make sure it is worth working extra hours even if you're on low wages."The £750m scheme, which will not be introduced until the autumn of 2015, will initially apply to children under the age of five, providing help to 1.3 million families. It will eventually be extended to include children up to the age of 12.
Both parents will have to be in work, with neither earning more than £150,000, to qualify. The Treasury confirmed that two parents with a joint income of £299,999.98 would be eligible.Both parents will have to be in work, with neither earning more than £150,000, to qualify. The Treasury confirmed that two parents with a joint income of £299,999.98 would be eligible.
One government source said that the £150,000 cutoff was designed to ensure that the highest-rate taxpayers could not benefit from the new scheme. The source said it would be overly complex to introduce a cutoff point that did not fit in with existing income tax bands.One government source said that the £150,000 cutoff was designed to ensure that the highest-rate taxpayers could not benefit from the new scheme. The source said it would be overly complex to introduce a cutoff point that did not fit in with existing income tax bands.
The £750m costs of the scheme will be funded by new money and by phasing out the Employer Supported Childcare (ESC), claimed by 450,000 families, which is offered by just 5% of employers. Parents who claim ESC will be able to remain in the scheme, though this will not be open to new claimants when the new scheme comes in. The new scheme will be more generous for parents with more than one child. The £750m costs of the scheme will be funded by new money from the budget and by phasing out the Employer Supported Childcare (ESC), claimed by 450,000 families, which is offered by just 5% of employers. Parents who claim ESC will be able to remain in the scheme, though this will not be open to new claimants after the launch of the new scheme, which will be more generous for parents with more than one child.
A source said the government already offers a great deal of support to lower-income families as it continued a Labour scheme to offer 15 hours of free universal childcare to all three- and four-year-olds. This will be extended this year to all two-year-olds whose parents are from the 20% most disadvantaged families, later rising to 40%. A source said the government already offered a great deal of support to lower-income families as it continued a Labour scheme to offer 15 hours of free universal childcare to all three- and four-year-olds. This will be extended this year to all two-year-olds whose parents are from the 20% most disadvantaged families, later rising to 40%.
Gavin Kelly, chief executive of the Resolution Foundation, said that overall most of the extra support will go to parents in the top half of the income distribution. He said: "It is absolutely right that the government is making childcare more affordable for families – it is a massive burden for millions of households. However, spending large sums on tax relief that tends to benefit higher-income families does not recognise that low- and modest-income families face the highest barriers to work from childcare costs."Gavin Kelly, chief executive of the Resolution Foundation, said that overall most of the extra support will go to parents in the top half of the income distribution. He said: "It is absolutely right that the government is making childcare more affordable for families – it is a massive burden for millions of households. However, spending large sums on tax relief that tends to benefit higher-income families does not recognise that low- and modest-income families face the highest barriers to work from childcare costs."
Kelly raised concerns that families who receive support through tax credits and the universal credit, which will be introduced in stages from next month until 2017, will not be eligible. He said: "It is vital that the government revises universal credit to ensure that low-income working families, including the large number who work part time on low pay, have an incentive to earn more."Kelly raised concerns that families who receive support through tax credits and the universal credit, which will be introduced in stages from next month until 2017, will not be eligible. He said: "It is vital that the government revises universal credit to ensure that low-income working families, including the large number who work part time on low pay, have an incentive to earn more."
Kelly acknowledged that a further £200m will be provided to less affluent parents claiming universal credit, though greater help will be provided to those in work.Kelly acknowledged that a further £200m will be provided to less affluent parents claiming universal credit, though greater help will be provided to those in work.
The government will meet 85% of the costs of childcare for parents on universal credit, provided that both parents are working and that they earn more than the personal tax allowance, which is due to reach £10,000 by 2015.The government will meet 85% of the costs of childcare for parents on universal credit, provided that both parents are working and that they earn more than the personal tax allowance, which is due to reach £10,000 by 2015.
Parents on universal credit who fail to earn this amount will be eligible for only 70% of the costs of childcare, the current amount on offer. Kelly estimated that the government would have to spend an extra £200m to offer 85% support to these parents. The government is likely to argue that the new system is more generous for less affluent parents. Labour met 80% of the costs of childcare for parents on tax credits. The coalition cut this to 70%.Parents on universal credit who fail to earn this amount will be eligible for only 70% of the costs of childcare, the current amount on offer. Kelly estimated that the government would have to spend an extra £200m to offer 85% support to these parents. The government is likely to argue that the new system is more generous for less affluent parents. Labour met 80% of the costs of childcare for parents on tax credits. The coalition cut this to 70%.
But But Stephen Twigg, the shadow education secretary, said: "Today's announcement will not make up for the £1,500 that families have lost in cuts to childcare support. Those who have seen their incomes cut because tax credits have been cut will not get any help. That is deeply unfair.
Stephen Twigg, the shadow education secretary, said: "Today's announcement will not make up for the £1,500 that families have lost in cuts to childcare support. Those who have seen their incomes cut because tax credits have been cut will not get any help. That is deeply unfair. "Parents will be disappointed that three years into this government, they will not get any help with childcare costs for another two and a half years. While working parents are promised help tomorrow, this government is only helping millionaires today."
"Parents will be disappointed that three years into this government, they will not get any help with childcare costs for another two and a half years. While working parents are promised help tomorrow, this government is only helping millionaires today."Cameron said: "If Britain is going to succeed in the global race we must help those who work hard and want to get on. Too many families find paying for childcare tough and are often stopped from working the hours they'd like. That is why we are introducing tax free-childcare, saving a typical family with two children up to £2,400 a year. This is a boost direct to the pockets of hard-working families in what will be one of the biggest measures ever introduced to help parents with childcare costs." Cameron said: "If Britain is going to succeed in the global race we must help those who work hard and want to get on. Too many families find paying for childcare tough and are often stopped from working the hours they'd like. That is why we are introducing tax free-childcare, saving a typical family with two children up to £2,400 a year. This is a boost direct to the pockets of hard-working families in what will be one of the biggest measures ever introduced to help parents with childcare costs."
Nick Clegg said: "I want to help every family to get on in life. Already we have created a million private sector jobs, put money back in people's pockets by cutting income tax, and extended free childcare entitlements for pre-school children.Nick Clegg said: "I want to help every family to get on in life. Already we have created a million private sector jobs, put money back in people's pockets by cutting income tax, and extended free childcare entitlements for pre-school children.
"Delivering tax-free childcare is the next step to ensuring all families can work and get on. The rising cost of childcare is one of the biggest challenges parents face and it means many mums and dads simply can't afford to work. This not only hurts them financially, but is bad for the economy too. This announcement of a £1bn investment in childcare will make sure it pays to work."Delivering tax-free childcare is the next step to ensuring all families can work and get on. The rising cost of childcare is one of the biggest challenges parents face and it means many mums and dads simply can't afford to work. This not only hurts them financially, but is bad for the economy too. This announcement of a £1bn investment in childcare will make sure it pays to work.
"An extra £1,200 for each child will make a real difference to families who find themselves constantly worrying about how to juggle their family budget. And extending support for working families on Universal Credit will make sure it is worth working extra hours even if you're on low wages.""An extra £1,200 for each child will make a real difference to families who find themselves constantly worrying about how to juggle their family budget. And extending support for working families on Universal Credit will make sure it is worth working extra hours even if you're on low wages."
Anne Longfield, chief executive of 4Children, the national charity for children and families, said: "Any increase in the support available for meeting the costs of childcare will be welcomed by parents. This announcement which appears to offer help for more families, from across the income spectrum, is good news.
"The expansion of childcare vouchers to parents whose employers don't currently take part in the scheme is hugely positive. However, it appears that whilst under current rules both parents can claim vouchers, in the new system the voucher will only be available to one earner. In addition, to benefit from the scheme both parents will need to be in work which will exclude families with a single earner, a blow to some families who have already lost their child benefit."