Asked by: Tom Tugendhat (Conservative - Tonbridge and Malling)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what information his Department holds on the income profile of recipients of (a) tax-free childcare, (b) 30 hours free childcare for children aged three and four, (c) 15 hours free childcare for children aged three and four, (d) 15 hours free childcare for two-year-olds, (f) free childcare and (e) childcare vouchers; and what assessment his Department has made of whether the income profile of recipients has changed since each scheme was introduced.
Answered by Elizabeth Truss
We estimate that around 2 million families are eligible for Tax-Free Childcare. As of 28 June 2018 over 336,000 applications have been made for Tax-Free Childcare and of these 313,000 been found eligible for the scheme. As of the 31 May 2018 over 74,000 families have paid money into their Tax-Free Childcare accounts and received the government top up.
The main eligibility criteria for Tax-Free Childcare and 30 hours free childcare have not changed since they were introduced. To help parents to return to work we have allowed parents to apply for 30 hours free childcare and Tax-Free Childcare 31 days, rather than 14, before returning to, or starting to, work.
Additionally, from September 2018, we have extended 30 hours free childcare to foster children, where their foster parents work outside fostering. To receive 30 hours free childcare it must be consistent with the child’s care plan.
There have been no policy changes to 15 hours free childcare for 3 and 4 year olds since the policy was introduced.
In September 2013, the government introduced 15 hours of early education for two-year-olds who are entitled to free school meals. From September 2014, this was extended to children whose families receive Working Tax Credit and have an annual gross household income of less than £16,190. This was so that children of low income working families, as well as those not in work, would benefit from 15 hours of early education. From 1 April 2018 the Government introduced a net earnings threshold equivalent to £15,400 for families on Universal Credit.
The limited tax exemption for childcare vouchers which took effect from 6 April 2005 has been subject to a number of minor technical changes which can affect eligibility. These have mostly been in relation to changes in tax credit regulations and changes to the definition of disabled children in legislation.
For question 158283 relating to childcare vouchers HM Revenue and Customs (HMRC) does not hold this information.
I refer the Honourable member to my statement made on 29 March 2018 which sets out the reasons childcare vouchers are closing to new entrants from 4 October 2018 - www.parliament.uk/business/publications/written-questions-answers-statements/written-statements/?page=1&max=20&questiontype=AllQuestions&house=commons%2clords&member=4097
Data on the income profile of recipients of Tax-Free Childcare and 30 hours free childcare can only be generated at disproportionate cost. It is not possible to estimate the income distribution of families benefiting from 15 hours of early education for 3 and 4 year olds as this is a universal offer. All recipients of 15 hours early education for 2 year olds earn less than £16,190. The distribution of childcare voucher recipients by annual income for the year 2017-18 is estimated to be as follows: 54% with income of under £45,000, 46% with income in excess of £45,000. No assessment has been made of the change in income profile.
Data on the age profile of recipients of Tax-Free Childcare and 30 hours free childcare can only be generated at disproportionate cost. We do not hold data on the age profile of parents in receipt of 15 hours early education for 3 and 4 year olds or for 15 hours early education for 2 year olds. Based on survey data, the age profile of recipients of childcare vouchers is estimated to be as follows: 5% aged under 30, 61% aged 30 to 39, 34% aged 40 and over. No assessment has been made of any change over time for any of these offers.
I refer the Honourable Member to the answer I gave on 20 March 2018 (133037).
Final Dedicated Schools Grant allocations to fund the Government’s childcare entitlements, for 2016-17 and before, can be found at the following links:
www.gov.uk/government/publications/dedicated-schools-grant-2013-to-2014
Final funding allocations for the early years childcare entitlements will be dependent on January census data in the usual way.
For information on the cost to the public purse of childcare vouchers in the last year I refer the Honourable gentleman for Tonbridge and Malling to the answer I gave to the Honourable Member for Belfast South (158316).
The Government will be spending a record amount on childcare support by 2019/20 – around £6bn per year.
Asked by: Tom Tugendhat (Conservative - Tonbridge and Malling)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what information his Department holds on the age profile of recipients of (a) tax free childcare, (b) 30 hours free childcare for children aged three and hour, (c) 15 hours free childcare for children aged three and four, (d) 15 hours free childcare for two-year-olds, (f) free childcare and (e) childcare vouchers; and what assessment his Department has made of whether the age profile of recipients has changed in the last three years.
Answered by Elizabeth Truss
We estimate that around 2 million families are eligible for Tax-Free Childcare. As of 28 June 2018 over 336,000 applications have been made for Tax-Free Childcare and of these 313,000 been found eligible for the scheme. As of the 31 May 2018 over 74,000 families have paid money into their Tax-Free Childcare accounts and received the government top up.
The main eligibility criteria for Tax-Free Childcare and 30 hours free childcare have not changed since they were introduced. To help parents to return to work we have allowed parents to apply for 30 hours free childcare and Tax-Free Childcare 31 days, rather than 14, before returning to, or starting to, work.
Additionally, from September 2018, we have extended 30 hours free childcare to foster children, where their foster parents work outside fostering. To receive 30 hours free childcare it must be consistent with the child’s care plan.
There have been no policy changes to 15 hours free childcare for 3 and 4 year olds since the policy was introduced.
In September 2013, the government introduced 15 hours of early education for two-year-olds who are entitled to free school meals. From September 2014, this was extended to children whose families receive Working Tax Credit and have an annual gross household income of less than £16,190. This was so that children of low income working families, as well as those not in work, would benefit from 15 hours of early education. From 1 April 2018 the Government introduced a net earnings threshold equivalent to £15,400 for families on Universal Credit.
The limited tax exemption for childcare vouchers which took effect from 6 April 2005 has been subject to a number of minor technical changes which can affect eligibility. These have mostly been in relation to changes in tax credit regulations and changes to the definition of disabled children in legislation.
For question 158283 relating to childcare vouchers HM Revenue and Customs (HMRC) does not hold this information.
I refer the Honourable member to my statement made on 29 March 2018 which sets out the reasons childcare vouchers are closing to new entrants from 4 October 2018 - www.parliament.uk/business/publications/written-questions-answers-statements/written-statements/?page=1&max=20&questiontype=AllQuestions&house=commons%2clords&member=4097
Data on the income profile of recipients of Tax-Free Childcare and 30 hours free childcare can only be generated at disproportionate cost. It is not possible to estimate the income distribution of families benefiting from 15 hours of early education for 3 and 4 year olds as this is a universal offer. All recipients of 15 hours early education for 2 year olds earn less than £16,190. The distribution of childcare voucher recipients by annual income for the year 2017-18 is estimated to be as follows: 54% with income of under £45,000, 46% with income in excess of £45,000. No assessment has been made of the change in income profile.
Data on the age profile of recipients of Tax-Free Childcare and 30 hours free childcare can only be generated at disproportionate cost. We do not hold data on the age profile of parents in receipt of 15 hours early education for 3 and 4 year olds or for 15 hours early education for 2 year olds. Based on survey data, the age profile of recipients of childcare vouchers is estimated to be as follows: 5% aged under 30, 61% aged 30 to 39, 34% aged 40 and over. No assessment has been made of any change over time for any of these offers.
I refer the Honourable Member to the answer I gave on 20 March 2018 (133037).
Final Dedicated Schools Grant allocations to fund the Government’s childcare entitlements, for 2016-17 and before, can be found at the following links:
www.gov.uk/government/publications/dedicated-schools-grant-2013-to-2014
Final funding allocations for the early years childcare entitlements will be dependent on January census data in the usual way.
For information on the cost to the public purse of childcare vouchers in the last year I refer the Honourable gentleman for Tonbridge and Malling to the answer I gave to the Honourable Member for Belfast South (158316).
The Government will be spending a record amount on childcare support by 2019/20 – around £6bn per year.
Asked by: Tom Tugendhat (Conservative - Tonbridge and Malling)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what the cost to the public purse has been of (a) tax-free childcare, (b) 30 hours free childcare for children aged three and four, (c) 15 hours free childcare for children aged three and four, (d) 15 hours free childcare for two-year-olds, (f) free childcare and (e) childcare vouchers to date.
Answered by Elizabeth Truss
We estimate that around 2 million families are eligible for Tax-Free Childcare. As of 28 June 2018 over 336,000 applications have been made for Tax-Free Childcare and of these 313,000 been found eligible for the scheme. As of the 31 May 2018 over 74,000 families have paid money into their Tax-Free Childcare accounts and received the government top up.
The main eligibility criteria for Tax-Free Childcare and 30 hours free childcare have not changed since they were introduced. To help parents to return to work we have allowed parents to apply for 30 hours free childcare and Tax-Free Childcare 31 days, rather than 14, before returning to, or starting to, work.
Additionally, from September 2018, we have extended 30 hours free childcare to foster children, where their foster parents work outside fostering. To receive 30 hours free childcare it must be consistent with the child’s care plan.
There have been no policy changes to 15 hours free childcare for 3 and 4 year olds since the policy was introduced.
In September 2013, the government introduced 15 hours of early education for two-year-olds who are entitled to free school meals. From September 2014, this was extended to children whose families receive Working Tax Credit and have an annual gross household income of less than £16,190. This was so that children of low income working families, as well as those not in work, would benefit from 15 hours of early education. From 1 April 2018 the Government introduced a net earnings threshold equivalent to £15,400 for families on Universal Credit.
The limited tax exemption for childcare vouchers which took effect from 6 April 2005 has been subject to a number of minor technical changes which can affect eligibility. These have mostly been in relation to changes in tax credit regulations and changes to the definition of disabled children in legislation.
For question 158283 relating to childcare vouchers HM Revenue and Customs (HMRC) does not hold this information.
I refer the Honourable member to my statement made on 29 March 2018 which sets out the reasons childcare vouchers are closing to new entrants from 4 October 2018 - www.parliament.uk/business/publications/written-questions-answers-statements/written-statements/?page=1&max=20&questiontype=AllQuestions&house=commons%2clords&member=4097
Data on the income profile of recipients of Tax-Free Childcare and 30 hours free childcare can only be generated at disproportionate cost. It is not possible to estimate the income distribution of families benefiting from 15 hours of early education for 3 and 4 year olds as this is a universal offer. All recipients of 15 hours early education for 2 year olds earn less than £16,190. The distribution of childcare voucher recipients by annual income for the year 2017-18 is estimated to be as follows: 54% with income of under £45,000, 46% with income in excess of £45,000. No assessment has been made of the change in income profile.
Data on the age profile of recipients of Tax-Free Childcare and 30 hours free childcare can only be generated at disproportionate cost. We do not hold data on the age profile of parents in receipt of 15 hours early education for 3 and 4 year olds or for 15 hours early education for 2 year olds. Based on survey data, the age profile of recipients of childcare vouchers is estimated to be as follows: 5% aged under 30, 61% aged 30 to 39, 34% aged 40 and over. No assessment has been made of any change over time for any of these offers.
I refer the Honourable Member to the answer I gave on 20 March 2018 (133037).
Final Dedicated Schools Grant allocations to fund the Government’s childcare entitlements, for 2016-17 and before, can be found at the following links:
www.gov.uk/government/publications/dedicated-schools-grant-2013-to-2014
Final funding allocations for the early years childcare entitlements will be dependent on January census data in the usual way.
For information on the cost to the public purse of childcare vouchers in the last year I refer the Honourable gentleman for Tonbridge and Malling to the answer I gave to the Honourable Member for Belfast South (158316).
The Government will be spending a record amount on childcare support by 2019/20 – around £6bn per year.
Asked by: Tom Tugendhat (Conservative - Tonbridge and Malling)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what estimate his Department has made of the annual cost to the public purse of (a) tax-free childcare, (b) 30 hours free childcare for children aged three and four, (c) 15 hours free childcare for children aged three and four, (d) 15 hours free childcare for two-year-olds and (e) childcare vouchers to the end of the current spending review period.
Answered by Elizabeth Truss
We estimate that around 2 million families are eligible for Tax-Free Childcare. As of 28 June 2018 over 336,000 applications have been made for Tax-Free Childcare and of these 313,000 been found eligible for the scheme. As of the 31 May 2018 over 74,000 families have paid money into their Tax-Free Childcare accounts and received the government top up.
The main eligibility criteria for Tax-Free Childcare and 30 hours free childcare have not changed since they were introduced. To help parents to return to work we have allowed parents to apply for 30 hours free childcare and Tax-Free Childcare 31 days, rather than 14, before returning to, or starting to, work.
Additionally, from September 2018, we have extended 30 hours free childcare to foster children, where their foster parents work outside fostering. To receive 30 hours free childcare it must be consistent with the child’s care plan.
There have been no policy changes to 15 hours free childcare for 3 and 4 year olds since the policy was introduced.
In September 2013, the government introduced 15 hours of early education for two-year-olds who are entitled to free school meals. From September 2014, this was extended to children whose families receive Working Tax Credit and have an annual gross household income of less than £16,190. This was so that children of low income working families, as well as those not in work, would benefit from 15 hours of early education. From 1 April 2018 the Government introduced a net earnings threshold equivalent to £15,400 for families on Universal Credit.
The limited tax exemption for childcare vouchers which took effect from 6 April 2005 has been subject to a number of minor technical changes which can affect eligibility. These have mostly been in relation to changes in tax credit regulations and changes to the definition of disabled children in legislation.
For question 158283 relating to childcare vouchers HM Revenue and Customs (HMRC) does not hold this information.
I refer the Honourable member to my statement made on 29 March 2018 which sets out the reasons childcare vouchers are closing to new entrants from 4 October 2018 - www.parliament.uk/business/publications/written-questions-answers-statements/written-statements/?page=1&max=20&questiontype=AllQuestions&house=commons%2clords&member=4097
Data on the income profile of recipients of Tax-Free Childcare and 30 hours free childcare can only be generated at disproportionate cost. It is not possible to estimate the income distribution of families benefiting from 15 hours of early education for 3 and 4 year olds as this is a universal offer. All recipients of 15 hours early education for 2 year olds earn less than £16,190. The distribution of childcare voucher recipients by annual income for the year 2017-18 is estimated to be as follows: 54% with income of under £45,000, 46% with income in excess of £45,000. No assessment has been made of the change in income profile.
Data on the age profile of recipients of Tax-Free Childcare and 30 hours free childcare can only be generated at disproportionate cost. We do not hold data on the age profile of parents in receipt of 15 hours early education for 3 and 4 year olds or for 15 hours early education for 2 year olds. Based on survey data, the age profile of recipients of childcare vouchers is estimated to be as follows: 5% aged under 30, 61% aged 30 to 39, 34% aged 40 and over. No assessment has been made of any change over time for any of these offers.
I refer the Honourable Member to the answer I gave on 20 March 2018 (133037).
Final Dedicated Schools Grant allocations to fund the Government’s childcare entitlements, for 2016-17 and before, can be found at the following links:
www.gov.uk/government/publications/dedicated-schools-grant-2013-to-2014
Final funding allocations for the early years childcare entitlements will be dependent on January census data in the usual way.
For information on the cost to the public purse of childcare vouchers in the last year I refer the Honourable gentleman for Tonbridge and Malling to the answer I gave to the Honourable Member for Belfast South (158316).
The Government will be spending a record amount on childcare support by 2019/20 – around £6bn per year.
Asked by: Tom Tugendhat (Conservative - Tonbridge and Malling)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what information his Department holds on the income profile of recipients of working tax credit childcare.
Answered by Elizabeth Truss
The tables below show information on the income profile and age profile of recipients of the childcare element of Working Tax Credit. This information is based on the latest Child and Working Tax Credit: finalised award data, for 2016-17, released on the 28th June this year.
Average number of in-work recipient families benefitting from the childcare element, 2016-17 |
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Range of income bands | ||||||||||||||||
Up to £6,420 | £6,421 to £9,999 | £10,000 to £19,999 | £20,000 to £29,999 | £30,000 to £39,999 | £40,000 to £50,000 | Over £50,000 | Total | |||||||||
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59 | 64 | 112 | 79 | 43 | 9 | 1 | 369 | |||||||||
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Footnotes |
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These figures show the average number of recipient families of the childcare element of Working Tax Credit, by income band. This shows the range of gross household income used to tapper Tax Credit entitlement. | ||||||||||||||||
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Age of eldest adult benefitting from the childcare element of Working Tax Credit, 2016-17 |
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Age of applicant |
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Under 20 | 20-24 | 25-29 | 30-34 | 35-40 | 40-49 | 50-59 | 60 and over | Total |
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0 | 17 | 66 | 90 | 87 | 94 | 14 | 1 | 369 |
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Footnotes |
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These figures provide an average count of Tax Credit recipients benefitting from the childcare element, consistent with our National Statistics |
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Asked by: Tom Tugendhat (Conservative - Tonbridge and Malling)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what information his Department holds on the age profile of recipients of working tax credit childcare.
Answered by Elizabeth Truss
The tables below show information on the income profile and age profile of recipients of the childcare element of Working Tax Credit. This information is based on the latest Child and Working Tax Credit: finalised award data, for 2016-17, released on the 28th June this year.
Average number of in-work recipient families benefitting from the childcare element, 2016-17 |
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| Thousands | |||||||||
Range of income bands | ||||||||||||||||
Up to £6,420 | £6,421 to £9,999 | £10,000 to £19,999 | £20,000 to £29,999 | £30,000 to £39,999 | £40,000 to £50,000 | Over £50,000 | Total | |||||||||
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59 | 64 | 112 | 79 | 43 | 9 | 1 | 369 | |||||||||
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Footnotes |
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These figures show the average number of recipient families of the childcare element of Working Tax Credit, by income band. This shows the range of gross household income used to tapper Tax Credit entitlement. | ||||||||||||||||
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Age of eldest adult benefitting from the childcare element of Working Tax Credit, 2016-17 |
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Age of applicant |
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Under 20 | 20-24 | 25-29 | 30-34 | 35-40 | 40-49 | 50-59 | 60 and over | Total |
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0 | 17 | 66 | 90 | 87 | 94 | 14 | 1 | 369 |
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Footnotes |
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These figures provide an average count of Tax Credit recipients benefitting from the childcare element, consistent with our National Statistics |
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Asked by: Tom Tugendhat (Conservative - Tonbridge and Malling)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the annual cost to the public purse has been of working tax credit childcare since that policy was introduced.
Answered by Elizabeth Truss
The government currently spends over £1 billion a year on childcare support through Working Tax Credit. The government is introducing Universal Credit, which will provide claimants with support for up to 85% of their eligible costs, up from the 70% support available in Working Tax Credit. As a consequence, the government expects to spend £300m a year more on childcare support for low-income working households.
Asked by: Tom Tugendhat (Conservative - Tonbridge and Malling)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the annual cost to the public purse of working tax credit childcare to the end of the current spending review period.
Answered by Elizabeth Truss
The government currently spends over £1 billion a year on childcare support through Working Tax Credit. The government is introducing Universal Credit, which will provide claimants with support for up to 85% of their eligible costs, up from the 70% support available in Working Tax Credit. As a consequence, the government expects to spend £300m a year more on childcare support for low-income working households.
Asked by: Tom Tugendhat (Conservative - Tonbridge and Malling)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether he plans to include provisions relating to (a) transparency and (b) changes in foreign currency transactions in the Payment Services Regulations 2017.
Answered by Simon Kirby
A competitive and transparent financial services sector is vital to ensuring that the UK economy delivers for consumers and businesses.
As with all policy areas, the Government continues to keep transparency of foreign exchange fees under review, and is currently conducting research on the effects of transparency on consumer decisions.
This will help inform the Government’s approach to foreign exchange transactions within the Payment Services Regulations, which are currently being consulted on as part of the transposition of the Second Payment Services Directive.
Asked by: Tom Tugendhat (Conservative - Tonbridge and Malling)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what progress has been made on the Government's plans to increase transparency in foreign currency transactions.
Answered by Simon Kirby
A competitive and transparent financial services sector is vital to ensuring that the UK economy delivers for consumers and businesses.
As with all policy areas, the Government continues to keep transparency of foreign exchange fees under review, and is currently conducting research on the effects of transparency on consumer decisions.
This will help inform the Government’s approach to foreign exchange transactions within the Payment Services Regulations, which are currently being consulted on as part of the transposition of the Second Payment Services Directive.