Nursery World - Government reveals £1.7bn in underspend on Tax-Free Childcare

New data from the Treasury shows that there is £1.7 billion in unspent funding for Tax-Free Childcare from the last three years, which is intended to support parents with childcare costs.

The TUC survey highlights how working mothers have had to take on more childcare responsibilities during the pandemic

The figures come from a response to a written parliamentary question tabled by Labour’s shadow early years minister Tulip Siddiq, who has accused the Government of serial incompetence in delivering childcare support to working families.

The new data from the Treasury reveals that in the last three financial years there was an underspend of £1.715 bn on tax-free childcare, which Labour said could have supported families with childcare costs if the Government had ensured that the public were aware of the scheme and how to use it.

For 2017-20 the Government forecast expenditure for TFC was £2.1bn for the three years, but actual expenditure was £385m, leaving £1.715 bn in underspend.

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