Prime Minister Gordon Brown has given families across the country an early Christmas present by reversing plans to remove tax relief from childcare vouchers (see page 4).
This was always an ill-considered proposal, which apparently took most ministers and MPs by surprise and was then duly condemned by many of them. The savings would not have made a substantial contribution to the costs of providing free nursery places for two-year-olds in deprived areas.
Meanwhile, the abolition of tax relief on the vouchers would have meant that they were effectively worthless, destroying all the voucher businesses built with the encouragement of the Government.
Early years settings would have been hit very hard, with many parents relying on vouchers to afford childcare. One nursery owner said that of around 150 families using her service, 147 were in receipt of vouchers. And this is not in a wealthy area, but parents who are struggling to manage their finances. Nurseries also treading a fine line between profitability and loss could have been tipped into disaster.
Register now to continue reading
Thank you for visiting Nursery World and making use of our archive of more than 35,000 expert features, subject guides, case studies and policy updates. Why not register today and enjoy the following great benefits:
What's included
-
Free access to 4 subscriber-only articles per month
-
Unlimited access to news and opinion
-
Email newsletter providing activity ideas, best practice and breaking news
Already have an account? Sign in here