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Tax credit and VAT changes welcomed

Childcare and early years organisations broadly welcomed Chancellor Gordon Brown's budget last week. Its main points affecting children and families included a rise to the child tax credit by 13 per cent up to 2008, in line with average earnings, and an extra 35m in 2006/2007 and 2007/2008 for the Parenting Fund with help for early learning for all.

Its main points affecting children and families included a rise to the child tax credit by 13 per cent up to 2008, in line with average earnings, and an extra 35m in 2006/2007 and 2007/2008 for the Parenting Fund with help for early learning for all.

The Daycare Trust welcomed the Government's pledge to refund the VAT paid by local authorities on children's centres and children's services. But it said that parents of children with disabilities needed more help, and there was still a shortage of quality childcare for the under-threes and options for parents.

Chief executive Stephen Burke said, 'The Government must now also look into how best to stimulate the supply of childcare places for all. We believe their plans should include in the near future a review of the way childcare is funded, and want to see a move towards universal provision through supply-side funding.'

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