Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how many parents with children over the age of 11 who previously claimed childcare vouchers will not receive support for childcare after the closure of that scheme.
We estimate that 1.5 million families will be eligible for Tax-Free Childcare, and have childcare costs. We estimate that there are currently 600,000 families using childcare vouchers.
Those parents, including those with children aged over 11, will be able to continue to receive vouchers when the scheme closes to new entrants in April 2018, whilst they work for the same employer and that employer continues to offer them. Tax-Free Childcare provides a 25% top-up on money paid into an online account, which parents can use to pay their childcare provider. Parents can receive up to £2,000 per child, per year in Government top-up and there is no lower limit on deposits.
The introduction of Tax-Free Childcare is an opportunity for all employers to engage with working parents, not just the minority who offer childcare vouchers. HMRC are working with employers so that they understand and can advise their employees about the benefits of Tax-Free Childcare.