New childcare rules announced in yesterday’s Budget are welcome, but cliff-edges for higher earnings need to be ironed out, says City A.M. Jeremy Hunt extended free childcare for one- and two-year-olds but this is withdrawn once a parent earns over £100,000 which the paper estimates could cost parents earning above the threshold £25,000 over the first four years of a child’s life.
Tom Clougherty, CPS Head of Tax, told the paper “Even for relatively well-off parents, this could deliver a crippling blow to the household finances.” He went on to add “It is also unfair to completely withdraw benefits (rather than taper them) and to base withdrawal on an individual’s income, rather than the household total.”
Read the article here.
Date Added: Thursday 16th March 2023
