Government’s latest proposal for childcare tax break

Working mums could claim bonus of up to £2,000


On the day the government’s controversial child benefit cuts come in to force, a new plan to assist working mothers has been proposed by the coalition.


Under the mooted scheme, working mothers with children aged between one and five will be entitled to claim tax incentives of up to £2,000 a year to pay for childcare.

The funds, deducted from parents’ tax bills, could be used to cover childminders and nurseries, David Cameron and Nick Clegg are to explain in a joint press conference in Downing Street today.

The current scheme, a complicated means-tested set-up involving vouchers and allowances, is likely to be scrapped to make way for the new one, with some commentators predicting this could come into force before the next general election in May 2015.

The soaring cost of childcare in Britain has been well documented in recent years, with many working parents struggling to cover the outgoings.

These new measures form part of the government’s attempt to support families, as well as show their aptitude for fresh ideas as the coalition reach halfway through their term.


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