The childcare tax credit component of the Working Families Tax Credit will rise from June this year to reflect recent evidence on the cost of childcare across the country, particularly for under-fives. Parents with two or more children can claim up to 200 a week towards the cost of eligible childcare, up from 150 a week, and the Government will consider extending the childcare tax credit to help families who need to employ childcarers, such as nannies, in the home, for example those with disabled children and those who work irregular hours.
Chancellor Gordon Brown (pictured) also announced the minimum wage would increase from 3.70 to 4.10 per hour for workers aged 22 and over from October this year.
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