Working parents set to get a £2,000 childcare windfall

Working families could benefit from a tax-free childcare allowance worth up to £2,000 per child from Autumn next year.

By The Newsroom
Tuesday, 18th March 2014, 8:25 am

Ministers are set to announce the scheme, which will ‘ease financial worries,’ ahead of Wednesday’s budget.

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It was first announced last year, but will be brought in sooner than expected, is worth £800 more per child than was initially proposed and will include all children under 12.

According to the Family and Childcare Trust, the average nursery cost for a child under two rose by 4.2 per cent last year to £106.38 per week for a part-time place. A full-time place can cost up to £11,000 for a year.

The scheme will be available to high-earning households with a joint income of up to £300,000, but it has come under fire for excluding couples where one parent does not work.