Budget 2017 tax free child care
Budget 2017: New tax-free childcare scheme to launch next month – what we know so far
9 Mar 2017
The new Tax-Free Childcare scheme which gives eligible families an extra 20% towards childcare costs will launch in April, the Chancellor announced yesterday. But with just one month to go, details about how it will work are still sketchy.
Tax-Free Childcare is a Government-backed scheme which helps parents with the cost of childcare. For every 80p you put in, the state will add 20p – so it effectively gives you basic-rate tax back on what you pay, hence the scheme’s name.
In total you’ll be able to use the scheme to pay for childcare of up to £10,000 per child each year – so you could get an extra £2,000 per child each year.
The new initiative will replace the existing Childcare Vouchers scheme, which will close to new entrants in April 2018. But despite its imminent launch, there’s very little official info about how it will work – the Treasury today told us more details would be released “soon”.
Tynemouth Nursery Group will keep you posted. Check our website for latest updates.