Nursery World - Childcare tax breaks 'distributed unfairly'

Early years organisations and nursery chains have called on the Government to close a legal anomaly that allows some businesses to offer tax-free childcare but not others. The call was made last week following the chancellor of the exchequer's pre-Budget report. Gordon Brown told the House of Commons that the Government was considering 'further reforms' including new tax and National Insurance incentives to expand employer-supported childcare, paying the childcare credit for home childcare by approved carers who are not already childminders, and increased flexibility in parental leave, including giving fathers time off to attend antenatal care. These reforms, he said, would be on top of the rise in maternity pay to Pounds 100 a week and the first-ever paternity and adoption pay from next April and new tax credits.

The call was made last week following the chancellor of the exchequer's pre-Budget report. Gordon Brown told the House of Commons that the Government was considering 'further reforms' including new tax and National Insurance incentives to expand employer-supported childcare, paying the childcare credit for home childcare by approved carers who are not already childminders, and increased flexibility in parental leave, including giving fathers time off to attend antenatal care. These reforms, he said, would be on top of the rise in maternity pay to 100 a week and the first-ever paternity and adoption pay from next April and new tax credits.

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