Parents may be forced 
to quit jobs

The majority of parents say they will have to consider quitting their jobs to look after their children if the Government ends the childcare vouchers scheme.

Nearly six out of 10 (57%) parents say they could no longer afford their current childcare arrangements if the tax break on vouchers was scrapped. Working parents can opt to receive up to £243 of their monthly pay in the form of vouchers, before National Insurance and income tax is deducted.

Prime Minister Gordon Brown has announced plans to end the tax relief on vouchers, which gives the equivalent of a 31% saving on the first £243 spent on monthly childcare costs for basic rate taxpayers and 51% for higher rate ones.

No new entrants to the scheme would be allowed after 2011, before the tax relief would finish for all still receiving the vouchers in 2015. The money will be used to give 40% of two-year-olds 10 hours of free childcare a week on a means-tested basis.

However, the plans have proved unpopular with the public, as almost 75,000 have signed a petition urging the Government to keep the vouchers. Nine former cabinet ministers are among 88 MPs who have also criticised the decision.

Copyright © Press Association 2009
All articles are copyright The Press Association 2009. News articles provided by The Press Association for Family Investments. Whilst every care it taken to ensure accuracy of editorial content, Family Investments takes no responsibility for any errors or omissions. The views expressed in these articles are not necessarily those of Family Investments.

To find out more about Childcare Vouchers click here.