As part of the spending review, the childcare element of the Working Families tax credit will reduce from 80 per cent to 70 per cent. Parents will also now have to work at least 24 hours a week, rather than 16, to meet the new criteria. Charities also warned that flexible and part-time work opportunities would be lost.
Cutting the maximum that working parents can claim by ten percentage points means that the amount some receive will drop from £240 to £210 a week.
The National Day Nurseries Association said it was concerned about how the cut would impact on low-income families and nursery owners. NDNA chief executive Purnima Tanuku said, 'Parents' ability to work or train is central to the successful recovery of the economy, but reducing the amount of childcare costs will hurt poorest parents the most.
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