Nursery World - Tax credit could be extended to care at child's home

Parents on low incomes who employ nannies to look after their children may soon be eligible for the childcare tax credit element of Working Families Tax Credit, the Government said last week. However, both the Treasury and the Department for Trade and Industry (DTI) have admitted it is unclear at this stage whether this means nannies would then become registered childcarers, or if the criteria that parents must use registered childcare to be eligible for the childcare tax credit would be changed.

However, both the Treasury and the Department for Trade and Industry (DTI) have admitted it is unclear at this stage whether this means nannies would then become registered childcarers, or if the criteria that parents must use registered childcare to be eligible for the childcare tax credit would be changed.

Chancellor of the exchequer Gordon Brown's Budget speech last week revealed the Government's decision to raise the childcare tax credit to up to a maximum of 135 a week for the parents of one child and 200 for two or more children in registered childcare. Afterwards a statement from the Treasury said, 'Some families, such as those with disabled children and those who work irregular hours such as nurses, face particular childcare needs. The Government will consider how to help those who need to use formal childcare in the home, for example, by extending the childcare tax credit.'

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