MPs including Labour’s Catherine McKinnell and Jess Phillips, Green Party co-leader Caroline Lucas and Liberal Democrat Layla Moran have backed an Early Day Motion calling on the Government to let MPs debate and vote on the proposed changes before they are implemented.
Ms McKinnell tabled the motion yesterday (24 July), expressing concern that:
- the Government plans to close the childcare voucher scheme to new entrants from 4 October 2018 without having conducted a ‘proper analysis’ of the winners and losers of this decision, despite a Treasury Committee recommendation to do so;
- if the scheme closes, families may be unable to make an informed choice about the childcare that best suits their family’s needs, based on a comprehensive and flexible package of support;
- many low-income families could be worse off than if they were to carry on using Childcare Vouchers.
Ms McKinnell, MP for Newcastle upon Tyne North, said, ‘The Government has repeatedly failed to publish any analysis that clearly demonstrates the impact that the closure of childcare vouchers will have on families, despite a recommendation from the Treasury Select Committee to do so.
‘This scheme is relied upon by hundreds of thousands of working parents across the country, and closing it to new entrants risks leaving some worse off from the transition to Tax-Free Childcare – and particularly lower-income households.
‘It is crucial that steps are taken to protect affordable childcare for those that need it most. Keeping Childcare Vouchers open alongside Tax-Free Childcare, while a thorough impact assessment is conducted, would both allow us a better understanding of how families will be affected, and give families the option to choose the scheme that best suits their needs.’
Research from the Childcare Voucher Providers Association (CVPA) has found that at least 90 per cent of families would be better off using childcare vouchers, tax credits, or a combination of the two, than they would be under Tax-Free Childcare.
The CVPA has launched a campaign to #SaveChildcareVouchers to ensure all families have access to the same financial support towards the cost of childcare.
Jacquie Mills, chair of the CVPA, said, ‘The proposed closure of childcare vouchers from 4 October will further exacerbate childcare costs and limit flexibility for parents. We want all working families to have a choice when it comes to paying for childcare that suits their family’s needs. That’s why we’re calling on the Government to #SaveChildcareVouchers ensuring all working parents have that choice.’
At the annual NDNA conference in June, shadow childcare minister Tracy Brabin defended childcare vouchers and said a Labour government would ‘do away’ with Tax-Free Childcare.
A Treasury Spokesperson said, 'Tax-Free Childcare is fairer as all households who are eligible can access support, regardless of who their employer is or whether they are self-employed
'It will cut hundreds of pounds from childcare bills and is good news for working parents.
'And it supports eligible parents with their childcare costs up to the age of 12.
'By 2019/2020 we will be spending more than any previous Government on childcare support, around £6bn.'
