Government Plans to Scrap Childcare Voucher System

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Some of the team members at Bits 'n Bumps use this invaluable service already to pay for SOME of the childcare costs that we have to stomach as working parents. The most you can claim (actually you sacrifice your salary and don't pay tax on that part) is £243 per month which barely covers half of a monthly bill for full time childcare. An annual study of local authorities across England by the Daycare Trust found that the average nursery place for a child under the age of two is now £167 a week. Source: Telegraph

Imagine our suprise and, quite frankly, disgust that the Government is now planning to scrap the scheme becase "too many higher earners are receiving tax breaks from it". So because 33% of all those who benefit from the system are higher earners it means the other 67% have to lose out which could financially cripple the majority.

It is claimed that cutting this tax benefit will mean that there will be more free spaces available for 2 year olds - but what about the 18 months prior to this when most working parents HAVE to return to work to pay the bills and keep a roof over their family's head? Where is the help for them? Tax Credits are all well and good - but if you vote Tory in the next election they are actually talking about scrapping that system too.

From http://www.vouchersblog.co.uk/what-is-the-government-planning/

What is the Government planning to do about Childcare Vouchers?

After April 2011, there’ll be no tax breaks on new Childcare Voucher schemes which are set up, so they will once again become a cost to employers as they were in 1999
After April 2011, no new employees will be able to join existing schemes and benefit from tax breaks
After April 2015, all old schemes will lose the tax breaks for people who were members before April 2011 – which means that at that point, employers will stop offering existing schemes

The stark facts are that unless we can do something about it, Childcare Vouchers as we know them will be phased out from 2011.

What the media is saying:

The Daily Mail: ‘Mugging for the middle classes’: Brown’s free childcare for poor could cost better-off families £2,000 a year

Scotland on Sunday: Battle looms over bid to tax childcare vouchers

Get involved:

Sign the online Downing Street petition here: http://petitions.number10.gov.uk/keepvouchers/

Would you benefit from the new plans?

Click here to find out: http://www.vouchersblog.co.uk/childcare-vouchers-vs-gordon-browns-new-plan/

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