Changes in the pipeline — childcare

Under proposals announced in the 2014 budget, from October 2015, some working parents with children under 12 are to qualify for help with childcare costs, if the scheme is implemented under the new government. Up to £2,000 per child is promised and is intended to cover 20% of the cost of childcare, up to an annual maximum of £10,000 per year, meaning that the more workers spend on their childcare, the greater the payment they can claim.

When the plan was announced in the 2014 budget, it was heavily criticised for failing to target families most in need, since it is to be available to families with earnings under £150,000.

The Tax-Free Childcare scheme is to be administered by HMRC, with no role for employers. If implemented, it will replace the current childcare voucher scheme. Parents who are already taking childcare vouchers will be able to remain on that scheme, although it will be closed to new joiners.