Childcare support too complex for parents, says LITRG

Parents find it difficult to understand how the childcare support schemes are supposed to interact says the Low Incomes Tax Reform Group (LITRG). This may lead them to make the wrong financial decisions on which scheme or combination of schemes to use.

The criticisms were levelled at tax credits the planned tax free childcare (TFC) universal credit free childcare entitlement and childcare vouchers.

Anthony Thomas LITRG chairman said: ‘It is crucial that guidance is available that not only explains the rules of each childcare scheme but also gives sufficient information to help people to choose between them and make the right decision. This information should be updated as often as necessary. There should also be a dedicated phone service that can answer questions and provide support on the range of childcare options.’

The campaign group is concerned at how the increase in minimum...