Go-ahead but delay for tax-free childcare

The government’s tax-free childcare scheme has been given the go-ahead, following a Supreme Court judgment. However, the scheme which was due to introduced this autumn and then next year will now be delayed until 2017.

The Supreme Court unanimously dismissed an appeal from present providers of childcare schemes and declared the scheme lawful, but the suspension remains in place.

Treasury minster Damian Hinds said that the government was happy with the outcome of the court case. ”We are pleased that the government’s proposals for delivering Tax-Free Childcare have been found to be lawful,” he said. “This government is absolutely clear on the importance of supporting families with their childcare costs.”

The scheme will be open to parents who both work and both earn less than £150,000 a year. Single parents working more than 16 hours a week are also eligible. It is expected to cover 20% (up to £2,000 a child per year) of childcare costs for children up to the age of 12.

www.gov.uk/government/news/government-confirms-tax-free-childcare-launch-date-as-it-welcomes-judgment-from-supreme-court