Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the £100,000 eligibility threshold for tax free childcare on families affected by that provision.

The £100,000 adjusted net income threshold for Tax-Free Childcare was set to align with Income Tax boundaries and ensure clarity for parents. The vast majority of parents earn below the threshold.

The cap applies per individual rather than per household, reflecting the structure of the tax system and preventing incentives for the lower earner to reduce their income (for example by working fewer hours) to qualify.