(Financial Secretary to the
Treasury): This Government is committed to supporting
parents with the cost of childcare. We’ve doubled free childcare
to 30 hours a week and introduced Tax-Free Childcare. This
support is fairer than the employer voucher scheme, as for the
first time it is available to self-employed parents, and all
qualifying working parents regardless of their employer. It is
better targeted as the support is based on a per child basis,
rather than a per parent basis.
The Government opened the childcare service in April of this year
– one site where parents can apply for both 30 hours free
childcare and Tax-Free Childcare through an easy-to-use, single
digital application. This avoids the need for parents to provide
the same information twice and means that many parents receive an
eligibility result in real time.
More than 275,000 parents now have an open childcare account. Of
these, over 216,000 parents received an eligibility code for 30
hours free childcare in September.
However, HMRC recognise that over the summer some parents didn’t
receive the intended level of service whilst using the site.
Whilst the majority of parents used the childcare service without
significant problems, some parents experienced technical issues
including delayed decisions about their eligibility for one or
both of the schemes. The Government acted quickly to address
this, and HMRC and their delivery partners NS&I have now made
significant improvements to the service.
Over the coming months, we will gradually open the childcare
service to parents of older children, whilst continuing to make
further improvements to the system. This means we can manage the
volume of applications going through the service, so parents
continue to receive a better experience and prompt eligibility
responses when they apply – almost all parents receive a response
within five working days, and most get their decision instantly.
All eligible parents will be able to apply by the end of March
2018.
On 24th November, we will open the service to
parents whose youngest child is under 6 or who has their 6th
birthday on that day. Parents can apply online through the
childcare service which can be accessed via the Childcare Choices
website: https://www.childcarechoices.gov.uk
Applications for Tax-Free Childcare accounts have been lower than
expected. We want to encourage more parents to take up the offer
they are entitled to and now the service has improved, we will
undertake activity to raise awareness of Tax-Free Childcare
amongst parents.
Tax-free Childcare is just one part of the support this
Government offers for childcare costs. Where eligible, parents
are able to access Working Tax Credits which covers 70% of
childcare costs or Universal Credit which increases this support
to 85% of costs, 15 free hours of childcare for disadvantaged 2
year olds, 15 free hours for all 3 and 4 year olds, and an
additional 15 hours to working parents of 3 and 4 year olds.
Employer Supported Childcare will also remain open to new
entrants until April 2018.
