Should childcare vouchers be scrapped?

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Rebecca Atkinson
Tue, 20/10/2009 - 10:58

The government is planning to scrap tax-efficient childcare vouchers - a move which has angered many parents.

These vouchers enable working parents to use £243 of both their pre-tax income to buy childcare vouchers. Because this money is free of income tax and national insurance, parents receive a tax break equivalent to 31% if they are basic-rate taxpayers, or 51% if they pay the higher rate of tax.

But the government wants to close the scheme to new entrants after 2011, and scrap tax relief for all from 2015. Read more here

The move will help pay for free childcare for low-income families - but is it fair? Should the government do more to help working parents, regardless of their income?

Have your say on the issue below...

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Guest (not verified):

As a parent who uses these childcare vouchers and with another one on the way, it could mean the difference in be able to work or having to give up work as the cost of childcare becomes more expensive. Isnt the governments idea to get people mothers back to work. How does this help??????????????

Tue, 20/10/2009 - 14:28
Guest (not verified):

If people can afford childcare then they do not need the vouchers. But for people on low incomes, it would mean them getting back to work and that would after a time further dispel the need for the vouchers. I believe that there already is tax relief for children, and maybe that could be increased if it is not enough for families.

Tue, 20/10/2009 - 23:43
Geraldine (not verified):

This latest decision to scrap childcare vouchers for working parents is absolutely ludicrous. The point of these vouchers was to enable mothers to return to work after having a baby, thereby contributing to income tax rather than claiming benefits for sitting at home.

I am a working mum and even though the Government seems to consider my family rich, after paying out a hefty mortage, ever increasing energy, petrol and food bills, childcare and other essentials for the family, I am lucky to have £20 left to spend on myself at the end of each month.

I absolutely rely on these vouchers to pay full time chlldcare. Without these vouchers, I may aswell pack in a career that I have built up over the last 10 years and sit at home and claim benefits.

Gordon Brown has absolutely lost touch with the people in Britain and needs to support working families rather than worrying about people on benefits all the time. I have supported the Labour Government for many years, but this latest decision is the last straw and I will not be supporting them in the next election. Good riddance Labour.

Fri, 30/10/2009 - 11:48
Guest (not verified):

We are on a combined salary of £60k which seems a lot. but by the time you pay for childcare / mortgage / running 2 cars to get to work there is not much left.

Gordon Brown wants to encourage people back to work - but some people have no work ethic and don't want to work because it's been easier for them not to. they get benefits, council houses etc. and for some families thats all they have known - they see their own parents doing it.

why not give something back to the people who pay taxes already, always have - people like myself that - if we are made redundant or are sick - we get very little.

Wed, 11/11/2009 - 12:01
BrianJHarrison (not verified):

I find the latest decision by the Goverenment to scrap childcare vouchers to be yet another blow to hard working families.
Take my families siuation, both me and my wife work, we both earn an average salary. We currently have our only daughter in nursery at a cost of £38 per day and because of the childcare voucher scheme only costs us £26 in real terms. We are planning for a second child and eventually we shall have two children in nursery.
If the governement goes ahead and scraps the scheme it shall cost a family like ourselves £76 per day to send both of our children to nursery.
Considering that I only earn £85 per day then there is very little incentive for me to continue working and I shall inevitably be handing in my letter of resignation to my boss and staying at home to look after my children.

There seem very little logic in the latest decision by government because they are going to force many parents like myself to give up work. Surely parents like myself contribute far more to the treasurey by working. I think this is yet another blind decision by this government to save money but inevetable shall cost the tax payer more. I hope the government in their wisdom to create 250,000 nursery places for 2 years olds has also considered paying unemployment benifit to all the people like myself who shall be forced to stay at home.

Thu, 12/11/2009 - 17:50