Working parents penalised again, as Brown defends childcare changes

by 21stcenturymummy on November 11, 2009

Source: BBC News Online 11 Nov 09

BBC NEWS | Politics | Brown defends childcare changes

Gordon Brown is planning to phase out tax relief on childcare vouchers (known as the Employer Supported Childcare Scheme) for parents over the next five year. Nursery fees in our area, Fulham, are extortionate – we pay £85 a day for our 2 year old to go to one locally, so you need to earn a considerable amount of money to just break even. The childcare vouchers are a good initiative because they basically mean you get tax relief when you buy the vouchers. Both parents can claim them if they work (and if their company participates in the scheme), so you can end up saving up to £900 per person per year. It’s not amazing, but every little helps.

Yet again, it seems to be the people that work hard to earn money that are made to suffer, in order to help poor people people from less advantaged backgrounds. I thought the government was trying to get mums back to work, but this latest plan will result in the exact opposite happening. There really don’t seem to be any incentives for mums to go back to work, so why should we bother.

Please sign the petition for the Prime Minister to rethink plans to scrap the childcare voucher scheme.

http://petitions.number10.gov.uk/keepvouchers/

{ 4 comments }

Heather November 12, 2009 at 8:53 am

£85 a day? that is extortionate, I didn’t realise it was so much. I am complelty gobsmacked. How can any mother afford to work and pay for more than just childcare? Or even that? I don’t remember ever having a job where my daily wage would be that much!

Sadly unable to sign the petition not being a UK resident but will tweet it and facebook it for you in an effort to find some people that can.

21stcenturymum November 12, 2009 at 9:55 am

It depends where you are I guess, and also the better nurseries tend to be the more expensive one (at least where are). Just had a quick read of your blog. It’s funny! Will link to it from my site.

Arneson Stidgeley November 27, 2009 at 1:51 pm

Hello, 21CM

It is not working parents who are penalised – rather it is ‘families where all parents are in paid employment outside the home’ who are penalised.

Working parents who have a spouse providing childcare aren’t penalised – good thing too, since they already face a higher average tax rate than double-income families and also, through the tax system, fund double-income families’ non-parental child care (ie, vouchers and similar).

Fairer would be replacing vouchers with increased child benefit: parents could then choose whatver childcare they felt appropriate for their family, with no skewed incentives.

21stcenturymum November 30, 2009 at 10:42 pm

Coudn’t agree more, as long as it’s the working parents that aren’t the ones that are penalised.

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