Nursery World - A better way to subsidise childcare

Further to the news story (7 March) and the letters regarding the payment of the childcare tax credit element of Working Families Tax Credit (21 March), I think that the WFTC should be distributed by vouchers. The parents should be given vouchers equal to 70 per cent of the childcare costs (or other allocated amount). These vouchers should be cashable at the post office, like a giro, by the childcare provider each week. The provider should have to show proof or registration on each occasion.

The parents should be given vouchers equal to 70 per cent of the childcare costs (or other allocated amount). These vouchers should be cashable at the post office, like a giro, by the childcare provider each week. The provider should have to show proof or registration on each occasion.

This would allow for parents to switch providers should the need arise. It would also, hopefully, put an end to fraud. The parents would still have control over to whom they pay the vouchers, but would be unable to cash them for themselves.

I realise that there is always some way to override the system, but if we used this method, fewer childcare providers would lose out financially.

Register now to continue reading

Thank you for visiting Nursery World and making use of our archive of more than 35,000 expert features, subject guides, case studies and policy updates. Why not register today and enjoy the following great benefits:

What's included