However, once the pilot ended they struggled financially as they returned to the normal tax credit system. This led to them considering decreasing their working hours or using informal childcare.
The findings are revealed in a survey carried out for the Department for Education to examine the extent to which childcare costs act as a barrier against taking a job and staying in it and using formal childcare.
The Childcare Affordability pilot (CAP 09) offered parents who had a household income of less than £16,000 payment of 100 per cent of their childcare costs through the childcare element of Working Tax Credits, in place of the usual offer of up to 80 per cent of their costs. The costs were also paid at a higher level than was usual with tax credits. The pilot was trialled in five areas of London.
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