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Childcare vouchers may be saved in govt u-turn

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Childcare vouchers could be reprieved with an increased cap limit as part of an apparent government u-turn in this week’s Budget, according to reports.

If correct, the decision would go against previous indications that the childcare voucher system was set to be scrapped as part of reforms to childcare funding.

It was expected childcare vouchers would make way for a new system of tax breaks for parents to pay for their childcare.

However the last two months have witnessed bickering and indecision between the coalition partners over how to apply the tax breaks, while it also appears the level of concession may have been reduced.

According to a report in the Daily Mail on Saturday, the coalition partners are now considering increasing the £55 a week limit on childcare voucher spending.

An exact figure for the new limit has not been revealed, however the Daily Mail suggested that it could be up to £1,500 a year or more per family – potentially meaning an increase of around £750 per parent.

With conflicting reports emerging throughout the process, it is likely the full details will only emerge in Wednesday’s Budget.