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Childcare Statement, 19/03/13 [E/NI/S/W]

Written Statement in the House of Commons on 19 March 2013 from the Economic Secretary to the Treasury, Sajid Javid on childcare.

He said:

"High-quality, affordable child care is essential in improving children’s life chances and supporting parents back into work. The high cost of child care remains a significant disincentive to work for too many parents.

The Government will therefore introduce a new scheme to offer tax-free child care to working families. Support will ultimately be open to 2.5 million working families with children under 12, around five times as many as benefit from the current system. Support will be provided at 20%—equivalent to the basic rate of tax—of yearly child care costs up to £6,000 per child. This will be worth up to £1,200 per child, and so will save a typical working family with two children under 12 up to £2,400 a year.

To be eligible, families will have all parents in work, with each earning less than £150,000 a year, and will not already receive support through tax credits and later, universal credit".

For full details see the House of Commons Hansard 19 March 2013 which is available from the UK Parliament website.

Further Information

House of Commons Hansard 19 March 2013