Tories campaigning to remove the childcare maximum income threshold

[FlakyPastries]

Kemi Badenoch has announced that the Tories want to remove the upper income threshold on childcare.

This means all working families will be able to claim it, including those earning over £100k.

Do you agree with this policy?

My baby’s nursery charges £30,000 and the free hours and tax free childcare is worth around £15,000 - so this is quite a significant benefit for those currently unable to claim.

they don't live in this country. Westons are Canadians, they aren't residents here. You can't tax someone who is not resident here at all.

Income generated here is certainly taxable, but not wealth.

If you mean the super rich, do you think they will actually use the fee childcare or do you think they might have a nannie?
Also, those super rich, as we know, are a tiny portion of the population. Then consider how many of them have young children.. now deduct the number with Nannie's... It's really not the problem you think it is.

And honestly, it's likely to be funded by the fact that those on £100k+ salaries (not super rich) wont go part time or shovel anything over into their pension. So tax receipts will go up

@lalalapland what is the threshold for being super rich?

Either 'high net worth' individuals (substantial assets worth a few £m. Or ultra high earners - top 0.1%.

This. Its also a shit policy.

I agree. Non working parents do not need children care.

They do. Non-working families in the UK need childcare primarily to support child development, prepare children for school, and allow parents to attend education, training, or address health and care needs. It removes a major barrier to entering the workforce or participating in training and education.Early years provision can improve cognitive, social, and language development, particularly for children from disadvantaged backgrounds. This lowers future public spending needs in areas like SEND school support, mental health services, and the criminal justice system.

What is the problem with a relatively high earning parent of a preschooler working part time?

I didn't say there was? If they want to go part time then go for it. But the 100k cliff edge results in people going part time even if they otherwise wouldn't. Or they pop it in their pension so they stay under the threshold.

The result is less income tax being paid and less disposable income fir people to spend to support the wider economy.

Firstly, given that many professionals are finding it difficult to get jobs (including GPs) i am not sure that some working part time would be a bad thing for the population or the economy. Secondly, I think it is also a good thing for children if relatively well paid parents work part time when they are preschool.

The impact is an economic one. 2 people working part time for the same pro rata salary results in less income tax than one person full time.

And yes that's lovely but not everyone wants to work part time. GPs have been in this position for many years, and have always worked part time. The issue with jobs is recent.

There are many shortages of experienced professionals. Unfortunately we can't just pull airline captains or neurologists with 30 years experience out of a hat!

Maybe a bit less income tax but also less unemployed people claiming benefits or not being able to do the career they have spent years training for. There could be an even bigger shortage of experienced professionals in the future if they had to change career when younger. The airline pilot shortage is global and due to the high training costs.

But Tories were the ones who introduced the limits. And they could have removed it at ANY time they were in power between 2010-2024.

They brought it in and now they're outside they're ignoring that, tarnished Labour for it! And promising the absolute opposite of everything they've done. Basic Gaslighting.

If you blur the details sounds like an abusive relationship. They do nothing but bully and twist narratives en masse.

If they were honest and said they got it wrong then fair. But they don't. They act like it wasn't them who brought it in and paint a picture that the other party did. Anyone that doesn't track this stuff falls for it. I know that's easy to do it's human nature. And they use it for bad.

Wild.

Isn't this what the USA do? Property tax. At least. It reduces the amount of people in oversized over expensive houses too. I think?

'A bit less' ? Last year my husband paid 70k in income tax. Next year he will pay 27k. Through cutting hours by 25% and salary sacrifice for the rest. someone filling 25% of his hours won't balance that. If his company can't fill the positions, there is no one to do the work, so they make less profit - less tax from that too! They then cut staff elsewhere as not needed, and so on and so on.

This is what most of my friends are doing, as I know lots of people in the 100-200k salary range. And these are highly skilled professionals in shortage roles.

Race to the bottom mentality seems to be rife in the UK now.

It's not a pilot shortage. It's a captain shortage. There are plenty of trainees but I don't think you want the cadets in charge when the seagull hits the fan. The shortage was caused by the pandemic.

This worries me. I consider myself to be potentially affected by any such shortages and I'm surprised more people dont.

On the other hand his company may decide to employ another part time person and even if it doesn't make up the whole amount there will be someone not receiving benefits. Plus your husband is presumably parenting his child during his time off which will also be good for the future. It's not a race to the bottom. It is thinking long term. More employed professionals is good. Parents of preschool children working part time also good for the future imo.

It's not good. When we look at the bigger picture and knock on impacts, it's easy to see that economic slowdown is inevitable. Everyone suffers then.

This mentality of sacrificing the economy because 'we can't possibly let a couple of children with rich parents have free childcare' - baffles me

So there are unemployed inexperienced pilots?

I'm glad you're saying this.

Most of people in my professional circle are on 100k+ (many ++), and almost all of them go part time. Those who peak up their hours usually do less complex components and are on much lower pay means less tax overall. Labour's adding pensions to IHT triggered masses of early retirements. These are all skills shortage areas.

We don't have children, he's living his best life 😆 And there is no one to fill the roles, there is a shortage! Enjoy your cancelled flights!

I don't believe we are sacrificing the economy long term "because we can't let rich parents have free childcare" though.

So you aren't effected by the lack of free childcare. Regardless, I don't fly much and given the environmental consequences think fewer flights would be a good thing.

Exactly, and this demonstrates your naivety.