Childcare: Fees and Charges
The question
To ask the Secretary of State for Education, what assessment she has made of the impact of the £100k cut off for free childcare provision on (a) overall workforce productivity, (b) willingness of impacted employees to take on additional hours and responsibilities and (c) willingness of impacted NHS clinical staff to take on additional hours of work and responsibilities.
Answered by Stephen Morgan
All families are eligible for universal 15 hours of free childcare for three and four year-olds, including those who earn over £100,000.
The £100,000 level was chosen to correspond with income tax thresholds and to be easily understandable for parents. Only a very small proportion of parents, 3.8% of parents of three and four year-olds in 2023/24, earn over the £100,000 threshold.
The government needs to use public funds in a way that provides value for money and considers it reasonable to target this funding at those individuals earning under £100,000 adjusted net income.
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