Nursery World - Editor

The axing of personal service companies for nannies in this month's Budget must have come as a shock to a lot of people. Whether this was a good or a bad idea is neither here nor there, now - it's gone. But this short-lived scheme may have had a lasting effect. It may have soured the relationship between many nannies and employers by making their business transaction the most important part of the relationship, and concentrating parents' minds on how much a nanny costs them.

But this short-lived scheme may have had a lasting effect. It may have soured the relationship between many nannies and employers by making their business transaction the most important part of the relationship, and concentrating parents' minds on how much a nanny costs them.

We know that nannies are the best value for many families' money, especially where they have more than one child, giving each child a one-to-one attention you can't put a price on. But it would be no surprise now if more parents turn to some other childcare that seems cheaper - or keep on evading the taxman through the much older device of not declaring their nanny's wages at all. This doesn't make personal service companies the answer. The best move for parents, which takes nothing away from nannies, would be for the Government to allow them the same tax credits available for all forms of registered childcare. GAYLE GOSHORN EDITOR

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