Daycare Trust welcomes Government rethink on Childcare Vouchers

Daycare Trust warmly welcomes news that the Government has responded to concerns raised by families and the childcare sector by rethinking their decision to abolish tax relief on childcare vouchers.

This decision means that basic rate tax payers will continue to receive tax relief on childcare vouchers which can save them up to £962 per year against the cost of childcare - an expensive but essential commodity for many families.

The changes also mean that the benefit for higher rate tax payers will be halved, bringing them into line with the relief received by basic rate tax payers. Daycare Trust agrees that the highest earners should not continue to receive more help than lower income families.

Emma Knights, joint Chief Executive of Daycare Trust, said:

“We at Daycare Trust are delighted that the Government has listened to feedback about their decision to scrap childcare vouchers. We very much welcome the news that parents can continue to rely on the support available through Childcare Vouchers and that all parents will obtain the same level of benefit.

We hope to hear shortly about the timetable for the expansion of free early education places for two year olds – these are a very important part of the Government’s commitment to improving and extending childcare.”

Day Care Trust, 03/12/2009