Tax-Free Childcare: consultation on childcare account provision
Wednesday, May 28, 2014
A consultation has been launched into tax-free childcare accounts, which enable parents to receive up to £2,000 per year in Government subsidy.
Launched on 23 May, this consultation is looking into methods of delivery of the accounts. Two public providers, National Savings and Investments (NS&I), and HM Revenue and Customs (HMRC) are under consideration. The Government says that private schemes are also viable options. The paper comes after the Childcare Vouchers Providers Association, whose members would be threatened by the plans, said the move could result in ’a dysfunctional monopoly market’. A previous consultation, which launched in August 2013, considered how the accounts would be designed and operated.
Under the scheme, parents will receive 20p for every 80p they pay into the account, up to a total £10,000 per year per child. The scheme is open to parents with children aged 12 and under, or children with disabilities up to the age of 17. Eligible parents must earn over £50 per week, less than £150,000 a year, and not be receiving tax credits or Universal Credit. The scheme is only open to parents who are in work.
The scheme is set to launch in autumn 2015.
- Publication date: 23 May
- Closing date: 27 June
- Access the consultation here