Families are to receive up to £1,200 a year towards childcare costs from 2015. The pledge will reportedly only apply to families in which both parents work and earn less than £150,000 a year. The Budget will be announced on Wednesday.
In order to qualify, both parents will have to be in work - or the one parent in the case of lone parent families - and each parent must be earning less than £150,000-a-year.Initially it will cover children up to five years old, but will build up "over time" to include children under 12.
This is the government’s long-awaited announcement on tax breaks to help families with their childcare costs, but the key fact that is emerging tonight is that people are going to have to wait even longer to see any money back in their pockets.
I understand that this scheme will be more widespread than current help, whereby employers have to sign into a scheme and people get childcare vouchers.
This will be available to all working parents and it’s said that it’s worth up to £1,200 a year but it won’t come in until after the next election.
Labour say this is just 'jam tomorrow' because there are no sweeteners in this year’s budget.
I think the government tomorrow will put it in a more nuanced way, saying that they do need to get the details right before introducing a very complex scheme.
Stephen Twigg, the shadow education secretary, has dismissed the government's move to help parents with childcare costs because the support only kicks in after the 2015 elections.
Parents will be disappointed that three years into this government they will not get any help with childcare costs for another two and a half years...
This announcement will not make up for the up to £1,500 that families on middle and low incomes have lost in cuts to childcare support – part of the £15 billion of cuts to support for children which will have been implemented before this announcement takes effect.