More generous help for child care from Coalition

Posted on March 18, 2014 by allmumkind

As part of the joint appeal by the Coalition to support child care for working families, they will be given up to £2000 per child under the 2014 budget.

This has come as a surprise as it is more generous than expected with plans for the new scheme to start in autumn 2015.

The move by the Coalition comes as pressure is mounting with more middle class workers being dragged into the 40p tax band.

Originally the support for families was based on the equivalent of basic rate tax on up to £6000 spent on childcare. This would equate to around £1,200. Now they have moved the expenditure to £10,000 on childcare which represents a payment worth £2000 for each child.

Although the Coalition are promoting this scheme more generously, one thing they have made clear is that this will only benefit two earner families and this is estimated to support 1.9 million families.

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As part of the joint appeal by the Coalition to support child care for working families, they will be given up to £2000 per child under the 2014 budget.

This has come as a surprise as it is more generous than expected with plans for the new scheme to start in autumn 2015.

The move by the Coalition comes as pressure is mounting with more middle class workers being dragged into the 40p tax band.

Originally the support for families was based on the equivalent of basic rate tax on up to £6000 spent on childcare. This would equate to around £1,200. Now they have moved the expenditure to £10,000 on childcare which represents a payment worth £2000 for each child.

Although the Coalition are promoting this scheme more generously, one thing they have made clear is that this will only benefit two earner families and this is estimated to support 1.9 million families.

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