However, both the Treasury and the Department for Trade and Industry (DTI) have admitted it is unclear at this stage whether this means nannies would then become registered childcarers, or if the criteria that parents must use registered childcare to be eligible for the childcare tax credit would be changed.
Chancellor of the exchequer Gordon Brown's Budget speech last week revealed the Government's decision to raise the childcare tax credit to up to a maximum of 135 a week for the parents of one child and 200 for two or more children in registered childcare. Afterwards a statement from the Treasury said, 'Some families, such as those with disabled children and those who work irregular hours such as nurses, face particular childcare needs. The Government will consider how to help those who need to use formal childcare in the home, for example, by extending the childcare tax credit.'
In the House of Commons last Thursday, trade and industry secretary Stephen Byers further outlined Government thinking on the subject. He said, 'In order to claim the childcare tax credit, families must use appropriate childcare. However, current childcare credit rules do not apply to childcare provided in a person's own home. This restriction poses problems, especially for parents who work irregular hours.
'I heard that at firsthand when I recently discussed these issues with a group of mothers in Bolton. They described the difficulties very clearly. A nurse working irregular hours set out graphically the problems that she encountered in finding affordable childcare. The mothers said that support for childcare costs in their own homes would be a significant advance. That support would also benefit families who have a child with a disability.
'I am therefore pleased to be able to announce that we will now consider how we can help families who need formal childcare in their own homes.' Mr Byers added that one possibility being considered by the Government was extending the tax credit. He described it as 'a practical approach that will make a real difference to many working parents'.
A Department of Trade and Industry spokeswoman said, 'At present, registered childcare in your own home is excluded from the childcare tax credit. We are looking at ending that exclusion and doing more for parents who need childcare in their own home, but we don't know what route this will take.'
Jackie Ballard, Liberal Democrat MP for Taunton and chair of the cross-party parliamentary group CRY, which is campaigning for the registration of all those working with children, said any move the Government made with regard to the status of nannies was a victory for the campaign. She said, 'Part of the justification for our campaign for nanny registration is that so many parents have been excluded from accessing the childcare tax credit because they use nannies. To fix this anomaly the Government either needs to register nannies or change the criteria for parents being eligible for the credit.'
Richard Fraser, spokesman at the Professional Association of Nursery Nurses, said, 'We are glad the Government has recognised that nannies are not used only by rich people but by shift workers such as nurses. We welcome its move in this direction.'
Kate Beith, head of the Chiltern College, added, 'It's a start for the Government to acknowledge that some children of working parents need to be looked after at home. If the Government is now considering the issue of home-based childcare, hopefully this will see nannies becoming registered.'
