Working parents to get free childcare allowance worth up to £2,000

The government is set to pledge £750m per year towards childcare for working parents.

Due to start next year, the new scheme will offer 1.9 million families up to £2,000 a year per child towards the costs of care.

David Cameron and Nick Clegg will announce the new scheme today saying that “tax-free childcare will help millions of hard-pressed families”.

Under the scheme, parents paying 80% of childcare costs of up to £10,000 per child to a registered provider will get the remaining 20% tax free.

The scheme will also pledge £50m for helping disadvantaged under-fives and will be open to children up to the age of 12.

“Tax free childcare is an important part of our long-term economic plan. It will help millions of hard-pressed families with their childcare costs and provide financial security for the future,” the Prime Minister will say.

The policy will exclude individuals earning more than £150,000 a year and will apply to families where both parents work.

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Readers' comments (1)

  • another slap in the face for stay at home mothers, who do the most important job of bringing up our children. I I don't understand the desire to get women back to work; all they are doing is taking jobs that would formerly have been done by men, so where is the fiscal or social advantage? Of course women should work if they want to, but many don't want to, but are forced into it by financial constraints. In many cases, after paying for childcare, they are hardly better off.

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