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Voucher rise is welcomed

Childcare and early years organisations met Chancellor Gordon Brown's Budget announcement of an increase in the tax and national insurance exemption on employer-supported childcare to 55 with a chorus of approval. The 10 per cent increase from 50 was part of a package of measures which also included a rise in the proportion of costs covered by the childcare element of the Working Tax Credit, and a rise in maternity and paternity pay from 106 to 108.85 a week.

The 10 per cent increase from 50 was part of a package of measures which also included a rise in the proportion of costs covered by the childcare element of the Working Tax Credit, and a rise in maternity and paternity pay from 106 to 108.85 a week.

John Woodward, managing director of the Busy Bees nursery chain - one of the largest providers of childcare vouchers - welcomed the increased exemption as a sign that the voucher system is popular among employers and employees. He said Busy Bees now works with 4,500 employers and around 40,000 parents receiving vouchers.

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