Gordon Brown to scrap childcare vouchers

[rob1974]

BBC says here that Gordon Brown is going to scrap childcare vouchers:

news.bbc.co.uk/1/hi/uk_politics/8279701.stm

We get two lots of vouchers and save about £150 a month. There's no way we'll both be able to keep working if they scrap them.

ive just looked at this on hmrc website...i dont think it means childcare vouchers, it is some other scheme 'Employer Supported Childcare scheme'

hmrc website here

Its not v clear reading but i dont think it means the vouchers themselves...hopefully someone more informed will be able to clarify.

hairybabysmum - have just read your link and i do think this is the salary sacrifice childcare vouchers: £55 per week = £243 month payale from your gross salary with no NI or tax to pay.

the vouchers are available to all - not means tested - and it sounds like he's planning to redirect this funding to support only the lower paid....

it is only a proposal at this stage though? probably get more info on the evening news?

will be keeping an eye on this. i assume we would all have to apply for working tax credits instead if this was to happen? you can't get both can you?

So GB will be benefitting the very poor families by scrapping something that was used by families with a wide range of incomes because some very rich families also made use of it.

This sounds to me like a cost cutting measure dressed up as a way of helping the less well off. I suspect we may well be seeing a new petition on the No 10 website.

don't get worked up about this
it's a proposal
wont' happen
they aren't going to be reelected

worry instead about what the tories have in store for the country

and you can't quiver in fear about Tories' plans properly until their conference spells something out.

...but in general, in the absence of definite manifestoes, worrying about the relatively unknown quantity of The Other Lot leads to voting to keep This Lot in, which increases the likelihood of this policy being spectacularly badly implemented. Or voting for a minor party, leading to a coalition govt and total stalemate in policies.

We are all, for example, going to hell in a handcart.

if it does happen then many familys wont be able to afford childcare whether cm's,nursery or nanny's

Agree with ramonaquimby.

Whatever they propose means diddly squat really as they don't have a chance of getting reelected.

I'm getting worked up over concentrating on the tory proposals as they will be in power this time next year.

Damn I can't strike out words.

I am furious with this proposal even if it is a little pie in the sky considering Labour's current electoral predicament. Another policy taking money away from the middle classes who may work but take home very little pay after childcare cost and are not entitled to any working tax credits. The only way I make even pocket money is through the childcare voucher system. Otherwise, I would almost be paying to work.

Agree with the other posters that it is the Tories to watch. Definitely feel that non means-tested child allowance is in danger of being scrapped considering the cuts that need to be made.

Tories are horrible too

Let's look at the proposal in detail (yes, I know it is very unlikely to be implemented, but bear with me)

Firstly, GB wants to provide 10 hours free childcare a week for 2 year olds, but it will only be made available to the poorest 40% of families. IMO, that must work out as quite a small number of families. Doing the sums, that would work out at about £35 a week for 40 weeks a year or £1400 per year.

Secondly, to pay for it he proposes stopping salary sacrifice childcare vouchers (SSCVs). As these are available to most families using childcare, that policy must affect a much larger number of households and, in some of those households, both parents will be in the scheme. Also, don't forget, childcare can also mean breakfast and link clubs which are used by school age children. If a parent earns between £10K and £30K (as most do), and they sacrifice the full amount allowed, they will save £962 a year.

Therefore, by scrapping SSCVs, GB will save lots of £962 a year, and will pay out a much smaller number of £1400 a year.

So, what does he intend to do with the difference?

Maybe he will pay childcare providers to provider this 'free childcare' - then again, he may pay for research into flying pigs!

This proposal is another reason not to vote Labour in the next election

I shouldnt worry guys, whoever wins the next election will have to put up all taxes to claw back all the money lent to the banks.

There will be no FREE anything imo, least of all help with child care costs. pie in the sky..
Where are all these 2 year olds going to be sent??? where is the money coming from?

I think Gordon specified it at the end of the next parliament so thats never then, he wont be in power and the tories couldnt give a flying fuck about the middle classes anyway, no help there.

Bleak times ahead for 'hard working families'

Read in the Sunday Times this week that the Tories would also scrap these vouchers