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Childcare voucher scheme: Plan 'will include parents who are carers' Childcare voucher scheme: Plan 'will include parents who are carers'
(about 2 hours later)
The government says it wants to expand a new childcare tax credit scheme to include parents who stay at home because they are full-time carers.The government says it wants to expand a new childcare tax credit scheme to include parents who stay at home because they are full-time carers.
A 12-week consultation on the scheme - first announced in March's Budget - is expected to start later.A 12-week consultation on the scheme - first announced in March's Budget - is expected to start later.
Families with two working parents could claim up to £1,200 a year per child.Families with two working parents could claim up to £1,200 a year per child.
The expansion of the scheme to carers, who look after disabled relatives and others, follows criticism the needs of non-working parents had been ignored.The expansion of the scheme to carers, who look after disabled relatives and others, follows criticism the needs of non-working parents had been ignored.
The government says the overall scheme - set to replace the existing system of employer-supported childcare vouchers - will help 2.5 million families.The government says the overall scheme - set to replace the existing system of employer-supported childcare vouchers - will help 2.5 million families.
But Labour says there has been a cut in support since the coalition took power in 2010.But Labour says there has been a cut in support since the coalition took power in 2010.
'Lifestyle choice'
The UK has some of the highest childcare costs in the world, with many people with two or more children saying it does not make financial sense for both parents to work.The UK has some of the highest childcare costs in the world, with many people with two or more children saying it does not make financial sense for both parents to work.
'More choice'
The new system is expected be phased in from autumn 2015, with children under five helped in the first year. It will then build up over time to include all children under the age of 12.The new system is expected be phased in from autumn 2015, with children under five helped in the first year. It will then build up over time to include all children under the age of 12.
Families with two working parents on less than £150,000 each would be able to claim up to £1,200 a year per child.Families with two working parents on less than £150,000 each would be able to claim up to £1,200 a year per child.
Critics have said the focus on work will penalise parents who stay at home to look after their children, or are unable to work because they act as full-time "carers" for other adults.Critics have said the focus on work will penalise parents who stay at home to look after their children, or are unable to work because they act as full-time "carers" for other adults.
However, extra details released by the government on Monday make it clear that parents who do not work because they are carers will also be eligible.However, extra details released by the government on Monday make it clear that parents who do not work because they are carers will also be eligible.
Carers are defined as those spending at least 35 hours a week looking after someone such as a disabled relative.Carers are defined as those spending at least 35 hours a week looking after someone such as a disabled relative.
The scheme will not be extended to those who stay at home to bring up their children.The scheme will not be extended to those who stay at home to bring up their children.
But Chancellor George Osborne said it would give parents "more choice and better access to the quality, affordable childcare". Chancellor George Osborne told BBC Radio 4's World at One programme: "This is help for formal childcare. Obviously it's not for stay-at-home mothers.
He said: "This is help for working families with their childcare and we're offering tax-free childcare, which will be a huge boost to women who go out to work." "I have huge regard for mothers who want to stay at home and look after their children. That's their lifestyle choice. I want to help those families too. I'm not trying to be exclusive.
But Neil Leitch, chief executive of the Pre-School Learning Alliance which represents childcare providers, said the government needed to go further and provide more childcare help for all families. "We have a proposal on married couples' tax breaks which I'm going to introduce in the Autumn Statement later this year... that will help stay-at-home mothers."
But Neil Leitch, chief executive of the Pre-School Learning Alliance, which represents childcare providers, said the government needed to go further and give more help to all families.
He said: "This tax break does nothing to support those who choose to sacrifice their salary and put their careers on hold to stay at home and look after their young children."He said: "This tax break does nothing to support those who choose to sacrifice their salary and put their careers on hold to stay at home and look after their young children."
The prime minister's spokesman said stay-at-home parents would benefit in future from separate plans to "recognise marriage in the tax system".
Discussing the proposed childcare tax credit scheme, he added: "This is about trying making it a straightforward scheme which will give support to those families where you have got both parents out to work."
Under the proposal, parents will be required to open an online voucher account with a voucher provider and have their payments topped up by the government.Under the proposal, parents will be required to open an online voucher account with a voucher provider and have their payments topped up by the government.
For every 80p families pay in, the government will put in 20p, up to the annual limit of £1,200.For every 80p families pay in, the government will put in 20p, up to the annual limit of £1,200.
The vouchers will be valid for any Ofsted-regulated childcare in England and equivalent bodies in Scotland, Wales and Northern Ireland.The vouchers will be valid for any Ofsted-regulated childcare in England and equivalent bodies in Scotland, Wales and Northern Ireland.
Half of the funding for the new scheme will come from the abolition of the previous system of employer-supported childcare vouchers - which is provided by only about 5% of employers - and in part by funding switched from elsewhere in Whitehall.Half of the funding for the new scheme will come from the abolition of the previous system of employer-supported childcare vouchers - which is provided by only about 5% of employers - and in part by funding switched from elsewhere in Whitehall.
A separate scheme will provide funding for parents who claim universal credit. It will see the state cover up to 85% of their childcare costs, up from 70% at present.A separate scheme will provide funding for parents who claim universal credit. It will see the state cover up to 85% of their childcare costs, up from 70% at present.
For Labour, shadow children's minister Sharon Hodgson said: "Only David Cameron's government could be so out of touch that they expect families to be grateful for help with childcare in 2015 when they've already seen costs spiralling and support taken away."For Labour, shadow children's minister Sharon Hodgson said: "Only David Cameron's government could be so out of touch that they expect families to be grateful for help with childcare in 2015 when they've already seen costs spiralling and support taken away."