News

Most childcare voucher users on basic incomes, say campaigners

Campaigners who are fighting Government proposals to scrap tax relief on childcare vouchers because the scheme is 'poorly targeted', have highlighted research showing that 92 per cent of voucher users are basic rate taxpayers.

The Save Childcare Vouchers campaign publicised the figures, which are taken from the Family Resources Survey 2007-2008, carried out for the Department of Work and Pensions, which contains the latest available data.

Separate research published last week by Computershare Voucher Services, the UK's largest voucher provider, found that 74 per cent of childcare voucher users are basic rate taxpayers. The poll of 1,800 parents found that 60 per cent would consider leaving their jobs if tax relief on vouchers is phased out.

Simon Moore, managing director of Computershare Voucher Services, criticised the Government for not consulting with the childcare voucher industry before announcing its plans. He said, 'We are now trying to encourage a debate and put the facts on the table. The Government made three assertions to justify the abolishing of tax relief on childcare vouchers - that they were poorly targeted, inappropriately used, and only taken up by large companies. All these assertions are inaccurate.'

Register now to continue reading

Thank you for visiting Nursery World and making use of our archive of more than 35,000 expert features, subject guides, case studies and policy updates. Why not register today and enjoy the following great benefits:

What's included

  • Free access to 4 subscriber-only articles per month

  • Unlimited access to news and opinion

  • Email newsletter providing activity ideas, best practice and breaking news

Register

Already have an account? Sign in here