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Pennies are about to fall from heaven for working and low income parents. <B>Mary Evans</B> explains new measures

The Government's campaign to assist working parents and eradicate child poverty enters a fresh phase next year with a new tax exemption scheme for employer-supported childcare and the introduction of baby bonds.

The aim is to break the cycle of deprivation that sees poor children grow up to become poor adults and ultimately poor pensioners, by encouraging parents to work and save.

Government ministers are also currently working on the fine detail of their new scheme to extend the range of childcare for which parents will be able to get financial support.

From the start of the next tax year, staff whose employers provide either approved childcare or vouchers for approved childcare, will be able to receive up to 50 a week of childcare free of tax and national insurance.

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