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 of parents accessing Working Tax Credit has not risen since 2004 (News, page 4).
Another option for consideration is the 'income bands model', similar to a system in place in New Zealand, which is based on putting parental income into three broad bands rather than calculating support based on exact income. The paper said this would mean the system was simpler to understand but would also mean 'rough justice' for families 'just either side of a step'.
Register now to continue reading
Thank you for visiting Nursery World and making use of our archive of more than 35,000 expert features, subject guides, case studies and policy updates. Why not register today and enjoy the following great benefits:
What's included
-
Free access to 4 subscriber-only articles per month
-
Unlimited access to news and opinion
-
Email newsletter providing activity ideas, best practice and breaking news
Already have an account? Sign in here
