Gordon Brown and childcare places for two year olds - back of cigarette packet thinking?
In his speech to the Labour Party conference in Brighton, Prime Minister Gordon Brown has just announced the creation of 250,000 childcare places for two-year-old children in England that will be funded by scrapping tax relief on childcare.
In other words, scrapping tax relief on childcare vouchers, a salary sacrifice scheme happily endorsed by Gordon from April 2005 when he was Chancellor of the Exchequer that currently enables working parents to save around £1,200 a year each on their childcare costs.
A household with two working parents can save just under £2,400 on their annual childcare costs. But not for much longer.
I wonder how middle earners with young children will appreciate the removal of this perk. Will the knock-on effect be that parents will not be able to afford to pay for as much childcare? The industry will suffer from a net loss of many millions of pounds of much-needed revenue at a time when it needs every penny it can bring in.
I also wonder what the childcare voucher companies must be thinking as in a casual throw-away comment Gordon has made childcare vouchers redundant for working parents.
Now, we just have to wait to be told when all of this is to happen.
Nice one Gordon.
In other words, scrapping tax relief on childcare vouchers, a salary sacrifice scheme happily endorsed by Gordon from April 2005 when he was Chancellor of the Exchequer that currently enables working parents to save around £1,200 a year each on their childcare costs.
A household with two working parents can save just under £2,400 on their annual childcare costs. But not for much longer.
I wonder how middle earners with young children will appreciate the removal of this perk. Will the knock-on effect be that parents will not be able to afford to pay for as much childcare? The industry will suffer from a net loss of many millions of pounds of much-needed revenue at a time when it needs every penny it can bring in.
I also wonder what the childcare voucher companies must be thinking as in a casual throw-away comment Gordon has made childcare vouchers redundant for working parents.
Now, we just have to wait to be told when all of this is to happen.
Nice one Gordon.