Taking the social considerations out of the equation for a minute, I don't understand how this makes economic sense.
I am self-employed and have twins. The childcare costs are absolutely hammering me, and most of the time I barely break even through working (I pay childcare because DH has had to take over the lion's share of all household expenses). However, any money I do make is taxed. The nursery staff who are employed to look after my twins pay PAYE tax. The small amount of disposable income I do get thanks to working gets spent back in the economy. The five years I've invested in building up my business are not going to waste, nor the five years of largely tax payer-funded higher education. As a sole trader I cannot access the childcare voucher scheme, and currently working part time it is not economically viable for me to become a limited company. Obviously nor can I offset those childcare costs against tax in any way.
I have been praying I can get through the next 2 years before they take this funding away so I can get some assistance with childcare costs to enable me to work more. Not watch Jeremy Kyle, work. You hear that Gideon? WORK MORE
If me working becomes completely cost ineffective I shall stop, and enjoy my children. All that lovely tax and PAYE and VAT I'm indirectly generating will stop going into the economy.
HOw does that help anyone? 