SDLP Foyle MLA Sinéad McLaughlin has called for an expansion to tax-free childcare, following the Director General for Customer Services at HMRC encouraging parents to open a tax-free childcare account in order to boost their back-to-school budget.
Working families with children up to the age of 11, or 16 if their child has a disability, can avail of up to £2,000 a year per child or £4,000 a year if their child is disabled, through the Tax-free Childcare scheme.
Said the Foyle MLA: “Any support which can be offered to families struggling with the crippling costs of childcare is to be welcomed.
“However, I also think that it is important to recognise the shortcomings of the Tax-free Childcare scheme.
“The current support offered means that it is becoming more and more common for hard-pressed families not to benefit from this well-intentioned scheme, given the £2,000 cap on support which is still in place per child per year.
“We know that the former Minister of Education previously wrote to the British government and urged it to lift the rate of tax-free childcare from 20% to 30%, so parents could claim more of their registered childcare costs from the government.
“However, an FOI response later revealed that the British government had not even taken the time to respond to this request within a reasonable timeframe.
“Moreover, this would make virtually no difference to some families unless the £2,000 cap is lifted from the support that is offered.
“Earlier this year, I launched a Childcare Rescue Plan which could have saved parents and providers significant costs over the last six months.
“I strongly believe that the British government and relevant Departments here should adopt this plan, including my call to lift the cap on tax-free childcare and increase the amount of support that is available.
“This call has also been made by Employers for Childcare. Unfortunately, the relevant authorities seem totally blind to the scale of the crisis that parents are facing when it comes to their childcare bills.
“The expansion of tax-free childcare would represent just a small measure to assist working parents with some of the most extreme costs of childcare.
“The real solution to the childcare crisis is a restored Executive that can agree, fund and implement a comprehensive and ambitious Childcare Strategy that guarantees universal and affordable childcare for all families.
“In the meantime, I would encourage families to avail of all possible support, including by engaging with the Family Benefits Advice Service provided by Employers for Childcare.”
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