Gavin Williamson, MP for South Staffordshire, has welcomed a major new childcare package unveiled by the Prime Minister today which will help 310,000 families in the West Midlands.
The Governments’ new Tax-Free Childcare scheme will provide 20 per cent support on childcare costs up to £10,000 per year for each child via a new simple online system. The limit had previously been set at £6,000. This now means support of up to £2,000 per child per year.
In addition, to help more families move off of benefits and into employment, the Government also announced that it will cover the 85 per cent of childcare costs for around 300,000 families receiving Universal Credit, making sure work always pays.
Gavin said: “For too long it has been far too difficult for many families to find good, affordable childcare. This announcement is great news for children and families in South Staffordshire. As part of our long-term economic plan, these measures will help parents provide more financial security for their families, while directing extra support to those children from disadvantaged backgrounds.”
Prime Minister, David Cameron said: “Tax free childcare is an important part of our long-term economic plan. It will help millions of hard-pressed families with their childcare costs and provide financial security for the future.”
The scheme will open in autumn 2015 and be available to around 1.9 million working families with children under 12 by the end of its first year of operation.
New online Tax-Free Childcare accounts will be run by HM Revenue & Customs (HMRC), in partnership with National Savings & Investments (NS&I). The accounts will make it easier for parents and providers, involve no fees and give parents security over their money, allowing them to build up credit for use when they need it most, for example during school holidays.
For the first time, self-employed parents and those working for the vast majority of employers who do not offer the existing ESC scheme will be able to access the scheme. It will also be available to those working part time due to the low minimum earning threshold of £50 per week.
The rules will also be tailored to support entrepreneurs and those self-employed who do not at first meet the minimum earnings requirement to be eligible for the scheme in their first year
Parents currently receiving childcare vouchers through ESC can continue to benefit from the scheme with their current employer should they wish to do so, but it will be closed to new entrants from autumn 2015. Workplace nurseries will be unaffected.
The changes follow the government’s consultation with parents, childcare providers, employers and other interested groups on the scheme’s implementation, the response to which has been published today.