childcare

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.

Basics of the rules set to be introduced next year

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.