Nursery World - Tax credit system reform 'would widen family net'

Changing the way the childcare element of tax credits is administered would boost the number of families eligible by nearly five million, according to the think-tank the Institute of Public Policy Research. In a report published on Monday, the IPPR said that switching financial support for childcare from the Working Tax Credit to the Child Tax Credit would widen support for 4.7 million families by extending the entitlement to those where parents do not work and those who are not eligible for the childcare element of the Working Tax Credit.

In a report published on Monday, the IPPR said that switching financial support for childcare from the Working Tax Credit to the Child Tax Credit would widen support for 4.7 million families by extending the entitlement to those where parents do not work and those who are not eligible for the childcare element of the Working Tax Credit.

The IPPR estimates that this reform would cost an extra 2 billion a year.

It identifies four categories of families who are currently missing out - lone parents; families facing higher costs, such as those living in London or with disabled children; children whose parents are not in work; and children in large families.

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