http://petitions.number10.gov.uk/keepvouchers/
The govenment is proposing that Childcare Vouchers are scapped so that the money can be spent on providing free childcare for 2 year olds.
Please sign and pass it on,
Thanks,
Lucy
www.lucy-locket.com
Early Years Foundation Stage Forum > Nursery, Playgroup, Children's Centre and Childminder discussions > Nursery Education Funding
I thought it was the tax and NI relief he was proposing to scrap not the employer supported vouchers themselves?
QUOTE (JacquieL @ Oct 21 2009, 15:57) 
I thought it was the tax and NI relief he was proposing to scrap not the employer supported vouchers themselves?
http://www.nurseryworld.co.uk/news/942036/...rap-tax-relief/
http://www.channel4.com/news/articles/busi...x+break/3375677
There's a bit more about it here,
Lucy
Very interesting reading, so it is the tax relief on the vouchers, not the vouchers themselves, which the Labour party are proposing to do away with.
As I understand it, the objection of the labour party seems to be that too many higher rate tax payers are benefitting from tax relief on these vouchers. If so, why not restrict them to lower rate tax payers only, rather than scrap them for everybody????
They are not scrapping the vouchers at all just the tax relief on them. by 2015. A lot might happen before then.
Gordon Browns explanation also gives a bit more information on this issue.
"Firstly, no one who is currently using the scheme will be affected in the next 5 years, so please don’t worry about any sudden changes. We are phasing in the changes so that families who currently benefit don’t lose out in the next Parliament.
Second, low and middle-income working parents will be able to benefit from childcare support through tax credits that are worth on average £68 per week for 470,000 families - much more generous than tax relief on vouchers.
And third, we are not actually abolishing the childcare vouchers. What will be happening is the Treasury will be phasing out the tax and national insurance relief employees receive for childcare vouchers, but companies will still be able to offer childcare vouchers to the people they employ and in fact, we expect many of them will continue to provide support for childcare.
We are making these changes because we feel that the tax relief is currently badly targeted. Around a third of the benefit for ESC* goes to the 6% of parents who pay tax at the higher rate. But more importantly, we want to use the money to extend free nursery places to many thousands more 2 year olds**. These nursery places are really popular with parents and they give children the very best start in life - helping to achieve a fairer society in which everyone can thrive.”
"Firstly, no one who is currently using the scheme will be affected in the next 5 years, so please don’t worry about any sudden changes. We are phasing in the changes so that families who currently benefit don’t lose out in the next Parliament.
Second, low and middle-income working parents will be able to benefit from childcare support through tax credits that are worth on average £68 per week for 470,000 families - much more generous than tax relief on vouchers.
And third, we are not actually abolishing the childcare vouchers. What will be happening is the Treasury will be phasing out the tax and national insurance relief employees receive for childcare vouchers, but companies will still be able to offer childcare vouchers to the people they employ and in fact, we expect many of them will continue to provide support for childcare.
We are making these changes because we feel that the tax relief is currently badly targeted. Around a third of the benefit for ESC* goes to the 6% of parents who pay tax at the higher rate. But more importantly, we want to use the money to extend free nursery places to many thousands more 2 year olds**. These nursery places are really popular with parents and they give children the very best start in life - helping to achieve a fairer society in which everyone can thrive.”
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.