Budget 2013: £1,500 childcare tax breaks to woo working women

  • Changes from next week could save up to £1,500 a year more per family
  • Parents earning up to £150,000 set to benefit from extension to tax breaks

By Tamara Cohen


Ministers are set to unveil more generous childcare tax breaks next week in a bid to woo working women voters.

Families could be entitled to claim up to an extra £1,500 per child every year from their tax bills to cover the cost of child- minders and nurseries.

All three and four-year-olds benefit from 15 hours of free childcare.

Helping hand: Families may be able to claim up to £1,500 a year for their child to cover the cost of child- minders and nurseries

Helping hand: Families may be able to claim up to £1,500 a year for their child to cover the cost of child- minders and nurseries

This benefit has already been extended to two-year-olds for the 40 per cent least well-off families.

The next planned giveaway – to be announced in next week’s Budget – was signalled in January but the announcement was postponed due to haggling over the details.


The Mail has learnt that parents earning up to £150,000 are now set to benefit from an extension to tax breaks.

The current system allows working parents who joined an employer’s childcare scheme on or before April 2011 – and are not 40pc rate taxpayers – to claim up to £55 a week free of tax and national insurance.

Help the middle: Deputy Prime Minister and leader of the Liberal Democrats Nick Clegg wants to help the British middle class who stand outside the benefits system and is 'punished' by expensive child care

Help the middle: Deputy Prime Minister and leader of the Liberal Democrats Nick Clegg wants to help the British middle class who stand outside the benefits system and is 'punished' by expensive child care


Senior Tories are threatening a push to oust George Osborne unless he slashes taxes in next week’s Budget.

Rebel MPs want David Cameron to move the Chancellor from the Treasury if he fails to make a decisive shift in policy to boost growth.

One Cabinet minister said: ‘The Prime Minister is at his best when his back is against the wall. We’re about to find out if George has the same qualities.’

Prospective Tory leadership  challenger Adam Afriyie also fired  a Budget broadside yesterday, calling for incentives for business.

Writing for The Spectator, he said: ‘If it was up to me, we would be much more agile, bolder, and take considered risks to encourage wealth creators, entrepreneurs, businesses and inward investment ... but I’m not in charge.’

This tax relief allows them to save around £1,000 a year or up to double that if both parents sign up for the voucher scheme.

Under the planned change, the £55 a week would be raised – to a level not yet announced – with suggestions that they could save up to £1,500 a year more as a family.

Britain spends more on subsidising childcare than most European countries, research suggests, but the price of childcare is also one of the most expensive for families.

Nick Clegg has been pushing for greater childcare support for the middle classes.

He said: ‘I have been an arch-proponent of giving more help to the British middle class who don’t get help through the benefits system or the tax credits system . . . who might statistically be better off than some on low incomes but don’t feel better off because they are spending 10 to 15 per cent of their weekly income on childcare.’

The new childcare tax break will draw on a report from the Commission on Childcare, which was set up by David Cameron last June to look at how to reduce the costs of childcare for working families and burdens on childcare providers.

It was announced this year that rules would also be relaxed so that nursery staff can legally be in charge of more children, allowing nurseries to expand and hopefully bring down bills.


The comments below have not been moderated.

Let me see..I have worked for 20 years before starting a family. I currently have 2 children and my nursery bill is £1400 per month for both to attend 4 days as week. My take home salary is £1500 so essentially we live off my husbands salary. No help from the state but I am paying tax and NI.... So not only am I contributing to the economy I am raising the next generation so there are folk around to deal with our ageing population. If I jacked in my job tomorrow I would get £600 per month in child tax credits. Nothing into the system but just taking out...tell me which should I do? Damned if I do and damned if I don't!

Click to rate     Rating   5

This is not about getting handouts its about tax breaks,a tax break is for people who PAY TAX so you are not paying your taxes for these people...you should be complaining about the people who DO NOT PAY TAX!Do you understand how ridiculously overpriced and expensive childcare is in London?over £1000 a month, thats over £12000 a year, for one child! If the government does not assist people trying to work then they are creating a cycle of unemployment. That makes no sense! People should not get handouts when they keep popping out kids, or get given bigger and bigger houses the more they have, but people should be assisted to go to work with things such as tax break instead of just being handed money for doing nothing! Its not about unprotected sex and mistakes (stupid comments!) Our economy needs people to work, to earn a wage, and to put the money back in to the system...it also needs children who have been instilled with good working values!Or maybe just the wealthy should have kids??

Click to rate     Rating   13

If you want kids and want to work why the hell do I have to pay for you to put your kids into care your kids your problem not mine pay for it your selfs if you can't afford them don't breed

Click to rate     Rating   12

Why should people who do not have kids or do not want kids pay for those who have kids. It's your choice to have kids and if you cant afford them you should not have them. Too many handouts from the government put all our taxes up. People should learn to stand on their own two feet and be responsible for the decisions they make not rely on government to pick up the pieces of their bad decisions

Click to rate     Rating   6

This is just wrong, why should childless people pay for those who had unprotected sex and hence had kids??? Why are we contributing so their lives are better than ours... what is going on???? There are already far too many people in this country so why is the tax break not being given to not have kids???? I know why its because Cameron and Clegg and Millaband all have kids and this is then a legal way to rob a bit more cash for themselves!!!!! Its simple theft from single people of marrieds without kids....

Click to rate     Rating   16

And from where are all these jobs going to materialise?

Click to rate     Rating   7

Governments loathe mothers who stay at home to help their children and husbands. They rather them as slaves to the state, the economy and multi-nationals. They hate to see independant traditional families....it irks them no end.

Click to rate     Rating   9

Before I read this I did a post earlier today on the DM saying the Chancellor will help only those with kids and get everyone else to pay for it. I was right. Why does everyone with children feel they have a God given right to be given money which has been taken from others who perhaps can't afford children?

Click to rate     Rating   9

But before this, pensioner should get a large cost of heating benefit, before they freeze.

Click to rate     Rating   4

Why should working mums not get help, the key word here is WORKING! I have one child and have worked for 20 years yet get no help whatsoever from any benefits. We struggle monthly to pay our bills and buy food and my reward for being at work and away from my child is approx £100 a month better off than I would be sitting watching Jeremy Kyle ... The government MUST support the working families instead of making it more appealing to not bother working and being yet another drain our economy instead of contributing. Maybe I should just be a proper 'career mum' and pop out 3 more sprogs then ill get paid to teach my three children how easy it is to just sit in our four bedroom free house, eat our free vegetables, get all our discounts because 'were on benefits' and then they can grow up and do exactly the same... cause you'd be a mug to work, right? ... The future is bright!

Click to rate     Rating   22

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