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Cutting the cost of childcare

by jamesbaker on 20 March, 2013

Nick Clegg has announced that these families will soon be able to get up to £1200 off the cost of childcare for every child – needed relief for many in these difficult times.

It will help parents make their own choices about how and when they return to work. Figures show that more than half of stay at home parents would rather work if good quality and affordable childcare was available. Many more would be able to increase the hours they work too.

That’s the kind of fairer society Liberal Democrats are fighting for in Government.


The scheme is simple. The Government will pay 20% of your childcare costs – up to an upper limit of £6000 of total costs, i.e. £1200 per child per year. Parents simply need to open an online voucher account – For every 80p they pay in, the Government will add in an extra 20p to within the limits set. 20% is the same as the basic rate of tax – so we are effectively offering tax free childcare.

To ensure we help everyone – people on low as well as higher incomes – the Lib Dems in Government also announced that many working families receiving universal credit will have 85% of their childcare costs covered in future (up from 70% in the benefits system today.)  Those who earn enough to pay tax will be eligible for this extra support so we can make sure work pays. A great boost to help parents on low incomes back into work.

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