News

Childcare tax credit extends to nannies

Early years organisations have broadly welcomed Government plans to extend financial support for parents using home-based childcare and other types of provision that have so far been unregistered. On Monday, Margaret Hodge, minister for children, announced a consultation that could see families earning around 43,000 eligible to claim tax credits towards their childcare costs from next April. These tax credits would cover the employment of nannies, childminding for children aged over seven, childcare for children aged over seven in breakfast clubs or holiday clubs, and clubs and activities for children under eight that last less than two hours a day.
Early years organisations have broadly welcomed Government plans to extend financial support for parents using home-based childcare and other types of provision that have so far been unregistered.

On Monday, Margaret Hodge, minister for children, announced a consultation that could see families earning around 43,000 eligible to claim tax credits towards their childcare costs from next April. These tax credits would cover the employment of nannies, childminding for children aged over seven, childcare for children aged over seven in breakfast clubs or holiday clubs, and clubs and activities for children under eight that last less than two hours a day.

However, the tax credits will not be extended to cover childcare done by relatives such as grandparents. The Government has also proposed that the new categories of carers would be subject to a 'light-touch' approval scheme that would not be run by Ofsted in England, but by a different organisation.

Mrs Hodge said, 'The new scheme does not attempt to intervene in or override a parent's judgement when they choose who cares for their child or what sort of care is provided. It is intended to provide parents, for the first time, with basic reliable information to help inform their choice.

'This will help parents select childcare that is safe, that is right for their children and that is backed up by access to financial support to make it affordable.'

Individual carers must meet three basic criteria - they will have to show there is nothing in their background that makes them unsuitable to care for children, that they have some understanding of working with children, and at the time of application for approval that they have a valid first aid certificate relevant to the care of children.

The Professional Association of Nursery Nurses welcomed the consultation, but said that it 'doesn't go far enough'. PANN professional officer Tricia Pritchard said, 'We would still like to see a full national register of all nannies and other childcarers, because we believe this is the only way to protect children, parents and genuine childcarers.

'However, these welcome proposals should encourage and enable nannies to have criminal records checks and to seek further training.'

Elizabeth Elder, chair of the childcare division of the Recruitment and Employment Confederation, said she was 'absolutely delighted' that the Government intended to give financial help to families employing nannies.

But other organisations were more cautious. National Day Nurseries Association chief executive Rosemary Murphy said such a move must not undermine the past seven years of Government investment in quality, regulated childcare. She said, 'It is ironic that while childminders, nurseries, playgroups and out-of-school care are heavily regulated and inspected by Ofsted, a "light touch" register is thought to be sufficient for nannies working alone in the parents' home.'

Gill Haynes, chief executive of the National Childminding Association, said, 'This new scheme must be developed in a way that ensures parents are not left confused about the difference between registered and approved carers and does not put at risk the confidence already built up through Ofsted registration and inspection of childminders and other childcarers.'

Daycare Trust director Stephen Burke said, 'Light-touch accreditation is designed primarily to enable parents to get tax breaks. Why isn't the current regulatory system extended to cover all forms of childcare? Ofsted should be asked to regulate nannies and other carers to ensure consistent standards and avoid confusion among parents.'

The consultation is on the DfES website at www.dfes.gov.uk/ consultations.

It ends on 16 August.