Employee Rewards and Benefits News
Government reverses plans on childcare vouchers
The government has revised its plans to phase out childcare vouchers, marking a dramatic step back after many pressure groups opposed the move.
As a result, ministers have proposed to retain tax relief to all new entrants from April 2011, as set out in the prime minister's speech to the Labour Party conference, at the basic rate of tax only.
Speaking on behalf of the Save Childcare Vouchers campaign, a representative said that the government's reversal is fantastic news for parents across the country, with employers and childcare providers also benefiting from the change in tact from ministers.
They said: "Keeping the tax relief for childcare vouchers at the basic rate of tax will mean that the vast majority of parents will continue to receive the support they need to pay for quality childcare."
Earlier last month, Ed Balls implied that the government will partially compromise over plans to scrap the childcare vouchers, stating that it was "good for the Treasury to listen" to voters.
Posted by Matt Gardner
