Now, I can't help but see it as a bit of a con. First of all, annoyed by how they sell it - our childcare bill is closer to 10-12k, so £1200 per year is NOT 20%. Also, at the moment, both me and DP get the full amount available in childcare vouchers, which they will abolish. I get £243 per month, DP gets £220, and I am a higher tax payer. Surely we will not be better off with this great new deal they have come up with?
Also, this will only be available to families where both parents work, current childcare voucher scheme is not restricted this way.
Am I missing something here, or are they about to screw people over again whilst dressing it as a positive move??
I can't believe they're doing this. Will dismantle all the voucher scheme framework, put people out of work and cause employers endless work unravelling it - plus increasing the employers costs as currently they make a saving too.
It won't affect me personally as we only have one dc in after school care and haven't bothered claiming vouchers for her anymore as just a small amount. When I went back to work after dd3 it was only the savings dh and I made through the scheme that made working financially advantageous at that point at all.
Sone figures - I've just calculated using the calculator on the HRMC site. Assuming that dh and I were paying what the government think is 'average' nursery fees of £6000/52 = £115.38 per week (my fees for dd3 -in the North - were more like £190 a week for full time). Vouchers if claimed by both of us and with him being a higher rate earner would give us a benefit of £2449 per annum. My benefit alone is nearly £1000. An in return for taking this away the Tories think £100 a month will do?
You can comment on that BBC article I have done so with a link to this thread because it reads a bit like Allegra Sutton has swallowed the press release whole and they need to see there are other viewpoints!
Any idea if this replaces the childcare element of tax credits too? Why can't they work it out like housing benefit, where they base it on the cheapest average rental costs in the area, I know it said in the news recently that Wimbledon nursery costs are something like £14,000 a year so their estimate of £6000 doesn't even touch that!
The cheapest childcare I've ever heard of was £3.50 per hour, and thats £7280 a year. Has anyone else ever seen any cheaper? Where on earth have the government got their figures from?
- People who are self employed and couldn't get vouchers
- Those who didn't earn enough to get vouchers without compromising their NI contribution records
- Single parents who could only get 1 parent's worth of vouchers
But for everyone else it looks like a cut. Looking here, if you both work and claim the maximum possible, even those with the lowest savings (being 2 50% tax payers) are disadvantaged. If only one of you worked then you lose it all.
I am surprised that it has a cost and isn't a saving on the existing set up.