News

Wider tax credit demanded

Early years organisations have said the Government should increase the amount parents can claim towards their childcare costs under the working tax credit scheme. The call was made last week by the National Childminding Association and the Daycare Trust following the Government's announcement of a new childcare allowance covering 85 per cent of costs for NHS-funded students, providing them with the same benefits already enjoyed by higher education students.
Early years organisations have said the Government should increase the amount parents can claim towards their childcare costs under the working tax credit scheme.

The call was made last week by the National Childminding Association and the Daycare Trust following the Government's announcement of a new childcare allowance covering 85 per cent of costs for NHS-funded students, providing them with the same benefits already enjoyed by higher education students.

Health secretary John Reid outlined the scheme, which is expected to help around 6,000 students each year and cost the Government 17m, when he addressed the annual conference of the Royal College of Nursing in Harrogate. Under the scheme, which comes into force in September and will be means-tested, a student training to become a nurse, midwife or physiotherapist will be able to claim up to 114 a week for one child and up to 170 for two or more children.

Stephen Burke, director of the Daycare Trust, said the new allowance reinforced the case for more help for all parents. Currently those eligible to claim the childcare element of the child tax credit are only entitled to a maximum of 70 per cent of costs.

He said, 'Affordability of childcare is still the main issue. The cost of childcare is a major barrier for parents who want to train and work.

'We have called for support to be raised to 90 per cent and certainly this allowance covering up to 85 per cent of childcare costs makes a strong case for raising the level for all parents.'

Liz Bayram, director of policy and public affairs at the National Childminding Association, said, 'It is good that the Government as an employer is recognising that 70 per cent of childcare costs is not enough for many families. The NCMA would hope that the announcement in relation to the NHS encourages the Treasury to recognise this and review levels of support for parents more widely.'

Mr Burke said the new allowance had removed 'an anomaly' as it brought NHS-funded students into line with higher education students. 'It will complement the NHS childcare strategy, which has helped to recruit and retain many key NHS staff, and will be warmly welcomed by parents training to join NHS professions,' he added.

However, Gill Robertson, student advisor to the RCN, said problems with childcare access and working tax credits still had to be addressed. 'We are looking forward to discussing further with the Government the issues of the lack of childcare places and the impact of this benefit on working tax credits,' she said.