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The UK’s plans for delivering tax-free childcare are lawful, the Supreme Court has ruled, leading the government to confirm that the scheme will be launched in early 2017.
The current voucher system, employer-supported childcare, will remain open to entrants until the new set-up comes into place, providing an estimated 1.8m families with up to £2,000 of childcare support per child per year.
The UK’s plans for delivering tax-free childcare are lawful, the Supreme Court has ruled, leading the government to confirm that the scheme will be launched in early 2017.
The current voucher system, employer-supported childcare, will remain open to entrants until the new set-up comes into place, providing an estimated 1.8m families with up to £2,000 of childcare support per child per year.
The Supreme Court dismissed a legal action brought by the Childcare Voucher Providers Association and Edenred (UK Group) Ltd, which offers services to employers for the current childcare scheme.
The parties claimed EU procurement law required a tender process and sought a declaration that the tax-free childcare proposals were be unlawful under Public Contract Regulations 2006.
Judge Lord Hodge said fresh procurement was not necessary when modifications to the contract were not substantial – as in the instant case. Lords Neuberger, Mance, Sumption, and Carnwath agreed.
