Tax credits might be paid directly to childcarers

By Catherine Gaunt, Nursery World, 4 June 2008

The Government is considering whether the childcare element of tax credits should be paid directly to nurseries and childminders rather than to parents, under proposals to improve the delivery and the take-up of tax credits.

One option under consideration is a model for making electronic payments direct to childcare providers. A joint discussion paper by the Treasury and HMRC looks at a range of options for improving how childcare support for parents is delivered through tax credits. The failure of tax credits to increase access to childcare for families was highlighted last week in research that showed that the number...

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