Employee Rewards and Benefits News
PM to have U-turn regarding childcare vouchers
In a move that will likely be pounced on by the opposition, Gordon Brown is to make an "embarrassing climbdown" regarding his position on childcare vouchers, it has been reported.
According to the Times, the prime minister will reveal that the vital funding - which has been attributed to saving money for working families by up to £2,300 a year - will be retained despite Mr Brown's original wishes.
It follows pressure from Labour backbenchers and a letter signed by nine former ministers which underlined how it could lose the support of those who rely on the provision.
The newspaper asserted that a revised proposal is currently being drawn up which would see parents paying the basic rate of income tax being eligible to claim the vouchers, though higher-rate taxpayers, such as those earning over £43,875 a year, being excluded.
Despite this, three-quarters of parents who currently claim will still be able to subscribe to the scheme.
However, it is not known if the decision will come, if at all; yesterday, Personnel Today contacted the government regarding the proposition, though it is refusing to clarify whether it has changed plans to scrap childcare vouchers, urging employers to wait until December's Pre-Budget Report.
Posted by Matt Gardner
