The Social Market Foundation’s idea for a new scheme that would operate in a similar way to student loans is reported to be being taken seriously by Downing Street.
The Alliance has warned that the scheme - called the National Childcare Contribution Scheme - risks pushing more families into long-term debt.
They argue that ministers instead should make childcare more affordable for all parents and start by reversing the decision to cut tax credits for parents on low-incomes and raise the level parents can claim for their childcare costs from 70 per cent back to 80 per cent.
Chief executive of the Alliance Neil Leitch, (pictured), said, ‘We are absolutely astonished that at a time when personal debt in the UK stands at £1.45 trillion, a scheme to fund childcare has been proposed that would have more families "borrow now and pay later".
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