Nursery World - Busy Bees campaigns for higher rate for Tax-Free Childcare

Busy Bees Benefits has launched a second nationwide 'Mind the Gap - Raise the Cap' campaign to ensure the Government's proposed Tax-Free Childcare Scheme reflects childcare costs.

The employee benefits company proposes that the Government raise the cap before the scheme is introduced.

It also recommends that the Government review and increase the cap annually to remain in line with average childcare costs. Childcare costs typically rise each year to match staff costs.

The scheme, announced in March, will allow families earning up to £150,000 a year, with children under five to claim up to £1,200 per child a year in tax-free childcare.

However, the Tax-free Childcare Scheme will not be introduced until autumn 2015 and both parents must be working to be eligible.

Parents will pay 80 per cent of their childcare fees and the Government will contribute the remaining 20 per cent, up to £6,000 a year per child.

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