Opinion

Letters: Handouts for Fraud

I am concerned about the way families receive help with the cost of their childcare through Working Families Tax Credit.

I have set up a small neighbourhood nursery in a deprived ward. I am trying to help, but some of the local parents are abusing this system. Several families have outstanding fees adding up to a few thousand pounds in total. I am aware that the families have received assistance up to 80 per cent to help pay for their childcare from the tax credits, which I feel is a very good incentive for people returning to work.

The unfortunate thing is that a lot of families abuse this and do not continue with childcare as arranged, or do not pay fees and then leave. I have tried different approaches to retrieve the outstanding fees, without any luck. I am considering the small claims court, but I will have to pay for this and may not get anything in return. How can this be right?

The only way this can be prevented is by the Inland Revenue paying the money directly to the provider. If this happened my outstanding fees would be less than half.

What the families either don't realise or don't care about is that this is my livelihood. People's jobs could be lost if fees are not paid.

The Government runs adverts warning against fraudulently claiming benefits, yet hands out money and does not follow up whether it is used correctly. Childcare providers do complain, but nothing is done about it. Is the Government happy for this to cause people to lose their jobs and businesses to close along the way?

This is a serious issue that needs to be looked into and changed. I know I speak for many other providers.

Lynda Haines, manager, Quarry Brow Day Nursery, Barrow in Furness, Cumbria.