I don't think we've had the small print for the new scheme through yet. The original proposals (that were due to start in Oct 2015) said both parents in two-parent families need to be working to claim and the one parent in single-parent families needs to be working to claim. The parents could be self-employed or employed (an improvement on current childcare voucher rules) but ignored student parents.
From what I understand if a family is already using childcare voucher scheme then they can continue with that instead - d
Oh yes Kim clearly there are whole segments of society that aren't 'hard-working' enough.
I am really annoyed at this because it's all about two income households AGAIN. Just like child benefit, it's intrinsicly unfair to single income households where either there is a lone parent or in my case a disabled parent. The government have agreed he can't work (he's on the support ESA) so why are we penalised?
The small print hasn't been announced yet so we live in hope <<hollow laugh>>
I don't understand. My DH and I get childcare vouchers worth nearly 6000£ a year. How is cutting this to 2000 a saving? Oh wait, it's not. Why don't they encourage more people to take up the existing system which seems to work perfectly well. If it is as well run as tax credits then we are all doomed.
It's a load of shite. I wish they would just put all the money into education and the healthcare service. This is what I want money spent on. This is what will impact my children, and everyone's, for the better. To be honest this will put me off voting for them as if seems they consider us thick enough to be swayed by it. I'm self employed, I work full time hours but stagger it around the kids, so often I'm working late at night and weekends to fit it all in. I won't get help because I'm not putting my children into child care, but I'm working like a dog. And if I did, I'd spend it on tutors and good healthcare, the things that this government are totally fucking up!
Dingbats - childcare vouchers may be an additional perk from your employer but most employees have to enter some type of salary sacrifice to get them. This means that most families are not getting the value of the childcare vouchers for free but only the amount that would go to tax on the vouchers. This is about £930 (per person) if you're a basic rate taxpayer.
It's still a drop in the ocean. I work with a lot of European people and we have talked about the cost of childcare in the respective countries and in the UK it is nearly double the cost of the other countries.
This government and to be honest the other lot to say they want to get parents back to work but when you have fork out over £900 PCM for childcare you have to be earning over £20k to be bringing home enough to cover the child care never mind the optional at least it seems to the government things like mortgage/rent, bills, food etc
kopparbergkate there are childcare grants available to full time students on HE courses, you might be eligible? Details on gov.uk website.
I will be sticking with childcare vouchers as long as I can as the benefits are definitely higher for us, in fact don't think we'll be eligible for new scheme (at least until I am made redundant but that's another story...)
How can the current childcare voucher scheme be better? Max voucher amount is 243 a month, that is not the tax saving. Tax saving is around 930 a year. What am I missing? Is it that the 930 is higher than the 20% of childcare cost?
Cindy - the tax saving can be more for someone who is paying 45% tax - £1,370. It would be nothing under the new scheme. Even a basic rate taxpayer would get more under the childcare voucher scheme if their partner is not working as under the new scheme relief is available only if both partners are working.
Thanks for the link to grants! We earn too much for those I think...and tbh, we don't need a grant; it would just be nice for us (well, DH) to get the tax break that a couple earning gazillions more than us will get automatically.