Home Business NewsEconomic News Working parents to get free childcare allowance worth up to £2,000

Working parents to get free childcare allowance worth up to £2,000

by LLB Editor
18th Mar 14 9:11 am

The government is set to pledge £750m per year towards childcare for working parents.

Due to start next year, the new scheme will offer 1.9 million families up to £2,000 a year per child towards the costs of care.

David Cameron and Nick Clegg will announce the new scheme today saying that “tax-free childcare will help millions of hard-pressed families”.

Under the scheme, parents paying 80% of childcare costs of up to £10,000 per child to a registered provider will get the remaining 20% tax free.

The scheme will also pledge £50m for helping disadvantaged under-fives and will be open to children up to the age of 12.

“Tax free childcare is an important part of our long-term economic plan. It will help millions of hard-pressed families with their childcare costs and provide financial security for the future,” the Prime Minister will say.

The policy will exclude individuals earning more than £150,000 a year and will apply to families where both parents work.

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