Childcare Bill

The Childcare Bill cleared its final stages in the House of Commons yesterday. this Bill delivers on the Conservatives pledge to help working families with childcare costs. Time and time again this was raised with me before the last general election. The last government had provided for all families where both parents are working an entitlement to fifteen hours of childcare paid for by the government. ( Acknowledging as always the government only has money it takes from other taxpayers.) This Bill increases that entitlement to thirty hours per week over 38 weeks a year. The government hopes that this change will help families with the cost of living by reducing the costs of childcare and support parents back into work or to work more hours, should they wish to do so. Two year old children from disadvantaged backgrounds are also eligible.

There are some limitations in order to control the costs. Based on current minimum wage levels a person would need to earn around £107 per week to be eligible. At the other end of the scale there is an income cap of £100,000. The Act will only apply to children in England.

Tax Free Childcare

Last night the House of Commons passed the Childcare Payments Bill which will now go to the House of Lords for scrutiny. The purpose of the Bill is to helping working families with their childcare costs. The Government will contribute 20% towards working families’ childcare costs up to a total of £10,000 childcare costs per year per child.

This scheme will be available from the autumn of next year and will be available to working families where all parents in a household are in work and earn less than £150,000 a year and do not already receive support through Tax Credits or Universal Credit. For the first time government support for childcare will be available to parents who are self-employed.