The government plans to give working parents help with childcare costs
The childcare tax break would be worth up to £1,200 a year per child - but only from 2015
The government wants to introduce a tax break to help with childcare costs, which could be worth up to £1,200 for each child, per year. That’s the good news. The bad news is that it won’t come in until the autumn of 2015 (conveniently after the election). It also will only be available for children up to the age of five initially (although eventually for children aged up to 12). How is it designed to work?
Nick Clegg wants parents to be able to share parental leave equally
All employees would also be able to ask for flexible working under the plans, although businesses could still stay no
Nick Clegg wants parents to be able to share leave between them and to be able to ask their employer if they can work flexibly. Companies won’t have to agree to a parent’s request, but it will mean more parents can ask. The changes wouldn’t happen until 2015 – but would they make a difference?
Saving on the costs of childcare – using employer childcare vouchers
If your employer provides childcare vouchers, they could be a big help in cutting costs, but there are some downsides.
Research by the Daycare Trust shows that some childcare costs have risen by 6% while wages have risen by a fraction of that amount. Many parents are missing out on help with childcare costs from their employer, either because their employer doesn’t offer childcare vouchers or because the parents aren’t aware of them (I know of several friends who didn’t realise their employer offered childcare vouchers). So how do they work?