Parents: Tax-free Childcare Payment

Posted by siteadmin on Tuesday 22nd of March 2016.

A new payment for working parents was announced just before the 2013 Budget, and was originally planned to be phased in from autumn 2015. This has now been put back to early 2017, when it will start to be phased in for parents of the youngest children. The new scheme will open to all eligible parents by the end of that year. It will pay 20% of childcare costs up to £2,000 per child, per year for children under 12. Over time the new system will replace the existing childcare vouchers system, which will now remain open for new entrants until April 2018. For couples the new payment will only be available if both partners are working at least 16 hours a week and each earning a minimum of just over £115 a week. An individual upper income limit of £100,000 will apply, £50,000 lower than previously proposed.