Question to the Department for Education:

To ask the Secretary of State for Education, whether she has made an assessment of the potential impact of removing the wear and tear allowance on (a) the finances of childminders and (b) early years and childcare provision in Chichester constituency.

Under HMRC’s ‘Making Tax Digital’ system, childminders can still claim tax relief for things they buy, repair, or replace for their business, such as furniture, equipment, and household items. This change standardises the way that sole traders record and claim business expenses and means that any business expenses related to childminding will be included in childminder’s tax calculations.

We are however aware of the strength of feeling amongst childminders and those who work with them. We have been talking regularly to Coram Pacey, HMRC and others to understand the issue, the effect that it is having on the childminding sector and to make sure that the concerns of childminders are clearly understood. The department continues to support childminders, who provide high-quality and flexible early education in a way that families across the country greatly value.

The expansion to 30 hours per week of government funded childcare will save families using their full entitlement up to £7,500 per eligible child per year, compared to paying for it themselves.

Thanks to the hard work of early years providers and local authorities, over half a million children have already benefitted from the expansion of 15 funded hours for children aged nine months to two years old, and many parents have increased their working hours, boosting family income and lifting more children out of poverty.