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Survey shows childcare providers have 'serious' concerns about Tax-Free Childcare

Funding Policy & Politics
Two-thirds of childcare providers have no faith in plans for a Government body to deliver Tax-Free Childcare.

A survey carried out by the Childcare Voucher Providers Association (CVPA) reveals that many providers have serious concerns about the impact of Tax-Free Childcare if the Government goes ahead with plans to run it through a single, public sector organisation.

Tax Free Childcare will be introduced in autumn 2015 and provide support of up to £2,000 a year for each child. Working families who earn less than £150,000 a year will be eligible.

The current childcare voucher scheme will be phased out and closed to new entrants when it is introduced.

The Government had initially planned for National Savings and Investments (NS&I) to deliver the Tax-Free Childcare accounts, however a legal challenge from childcare voucher companies led the Treasury to launch a five-week consultation on its delivery in May.

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