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A new scheme of tax-free childcare is scheduled to launch in autumn 2015 and rolled out within a year to all eligible families with children under 12, the government has announced. An earlier version of the set-up had the age limit at four years old.
The subsidy itself has also been increased, meaning parents will receive as much as £2,000 for each child: 20% support on care costs up to £10,000. The maximum amount proposed originally was £1,200.
A new scheme of tax-free childcare is scheduled to launch in autumn 2015 and rolled out within a year to all eligible families with children under 12, the government has announced. An earlier version of the set-up had the age limit at four years old.
The subsidy itself has also been increased, meaning parents will receive as much as £2,000 for each child: 20% support on care costs up to £10,000. The maximum amount proposed originally was £1,200.
The system – operated by HMRC in partnership with National Savings and Investments – will be managed through online accounts, with assisted approaches available for those who cannot access the internet.
Parents will be able to open a childcare account, pay in money when they want to, and receive government top-ups and spend on qualifying childcare as they wish.
They will also be allowed to build up balances in their accounts and withdraw money, with their contributions returned to them and the top-ups returned to the government.
