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Will This New Childcare Support Benefit You?

David Cameron has today announced plans to help working parents with childcare costs from next year

Parents could get up to £2,000 per child to help them meet childcare costs, in a new tax-free scheme announced by the government – compared to an original proposal of up to £1,200.

Prime Minister David Cameron and his deputy Nick Clegg unveiled the plan today, which will begin in autumn 2015. Working parents with children under the age of 12 will be covered within the first year of the scheme starting.

In short, the government will give 20 per cent of childcare costs up to £10,000 a year for each child, so a maximum of £2,000. This will be done through an online system.

You qualify if you work part time, earn a minimum of £50 a week, are on maternity, paternity or adoption leave, or starting your own business. But, only if both parents work and neither of you has an annual salary of more than £150,000 (combined salary isn’t an issue) or receives support from tax credits, Universal Credit or ESC.

The government will give 20 per cent of childcare costs up to £10,000 a year for each child

‘Tax free childcare is an important part of our long-term economic plan,’ says David Cameron.

‘It will help millions of hard-pressed families with their childcare costs and provide financial security for the future.’

The government has highlighted that this scheme is an improvement on its original proposal last year, which suggested support would cover a portion of childcare costs up to £6,000 per child (so around £1,200) and take longer to put in place.

How will this change affect you? Let us know on the comments board below.

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