The way in which the Government has chosen to deliver the Tax-Free Childcare scheme could have implications for providers and parents, warns Fiona Shields.

It has been a big week in childcare policy. On Tuesday, the Government announced three flagship policies to help parents access affordable and quality childcare. The extension of the pupil premium to the early years should be welcomed – it is a step in the right direction. Similarly, covering 85 per cent of childcare costs for parents receiving Universal Credit will help those most struggling. Tax-free childcare, however, presents a different story.

This new scheme will be introduced from autumn 2015, should the relevant systems be built in time. Over the following years, it will be responsible for phasing-out the current childcare voucher scheme, which will be closed to new entrants upon the introduction of tax-free childcare.

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