According to the Childcare Voucher Providers Association (CVPA), at least 90 per cent of families would be better off using childcare vouchers, which will close to new parents on 4 October, or a combination of tax credits and childcare vouchers, than the Government’s Tax-Free Childcare (TFC) scheme. Parents cannot claim tax credits and use TFC at the same time.
The CVPA figures show that two parent families spending the average household expenditure of £3,780 a year on childcare, would be better off using childcare vouchers than Tax-Free Childcare.
For example, a two-parent household with both parents employed and one child, earning the average income before tax of £46,400 and spending the average household expenditure on childcare, would receive £1,206 of support through childcare vouchers compared to £756 with Tax-Free Childcare (TFC).
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