Tax free childcare allowance should be increased

[PinkPlantCase]

Our nursery fees are going up by around 11% for next year. For us this is an increase in costs close to £1,500 over the year.

I can understand why. Their costs have increased and will increase further when the new living wage comes in. I don’t blame them for this and I want them to be able to continue to provide high quality care.

However the amount we can claim as ‘tax free’ has not increased, unlike other benefits in the recent budget. It is still limited to £2,000 total across the year.

I have written to my MP already but AIBU to think the cap should be raised atleast in line with inflation? Or should working parents just accept rising costs?

I agree.

Separate point but maternity allowance / SMP should have a large increase

Agree they should be higher but they have atleast been raised in line with inflation.

I agree. I'm a childminder and have just put my prices up for January. I feel terrible but I am barely scraping by. TFC is used by most of my parents and I know it helps a lot.

I don't use our whole allowance but I agree it should be raised.

Child benefit cap should also be increased but highly doubt either will ever happen

Agree but who funds it? Won’t other taxes have to increase to cover it meaning you won’t actually be any better off?!

I'd work 5 days rather than 3 and pay more tax/NI. Any further hours on top of what we already pay for would be at 100%, so part time it is until next year.

YANBU

its an appallingly low amount to begin with, I almost didn’t bother with setting the account up as it’s a drop in the ocean - maybe that’s what the gov want

It should fund itself as fewer women would drop out of the workforce or as PP said pick up more hours because they’re able to afford more childcare.

Just received a letter this morning regarding increase in fees starting January. Bear in mind that it just went in April.

I can genuinely understand why but like OP said TFC needs increasing and for those who use the funded hours, this needs increasing as well as the amount given to nurseries by the government for these "funded hours" is shocking!