(More) means testing for funded hours - a possibility?

[User2637535]

On the back of the removal of winter fuel payment for the majority of pensioners, I started wondering what else might become means tested (I'm not against means testing WFA, but state pension is a very low threshold). Child benefit is already means tested, but does anyone else think that the funded hours and tax free childcare system might be slashed? At the moment a two-parent household with an annual income of 198k still receives the 30hours and TFC (if each parent earns 99k) - is it likely to be brought into line with CB? And now that the threshold for CB has been raised to 60-80k, is it likely that'll become per household, rather than individually?

Or have I just handed Rachel Reeves some ideas 🫣

I can see childcare and child benefit becoming a household rather than individual criteria, but they will likely raise the minimums to do so... the current system is unfair and child benefit threshold has only just gone up as it was realised to be too low.

I agree that both should be household benefits rather than individual, but I'm just doubtful that they'll raise the threshold that much - I certainly can't see them raising it over 100k. Might just be my natural pessimism though!

They need to do something or more nurseries etc will close. Fund less hours but fully fund them would make more sense but probably not a vote winner.

I'm always shocked by posters stating how much they're charged per day after the funded hours - the hourly rate at our nursery isn't much more than the government funding. I realise I live in an extremely cheap area of the country though, i have no idea how people manage in the South East.

I too can see some tinkering with the thresholds but not by much. There comes a point where, if the threshold for funded hours becomes too low you start losing members of the workforce (mainly women).

I think any restriction of funded childcare hours would be a pretty hard sell, given the way it's linked to work. Am always sceptical about switching things to household income too, as it means a lot more admin.

Does it mean more admin though for either of these? CB the burden is on the claimant to pay any 'charge' back, and for funded hours you already have to make a declaration about your and your partner's income - surely changing it to household wouldn't change the work involved?

Yes. It's a whole new system that would have to be invented and maintained. The current systems exist to check for one partner being over the threshold, not for combined income.