Childcare: Tax Allowances
The question
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of the household income threshold for childcare support on (a) labour market participation and (b) associated reductions in local economic activity.
Answered by James Murray
The Government is committed to providing access to affordable childcare to support parents’ who want to go out to work, and their local economies. This includes rollout of 30 funded hours for working parents from September 2025, which the OBR has estimated would lead to 60,000 more people in employment and 1.5m people increasing their hours.
The income threshold for childcare eligibility ensures that support is targeted towards the families who most need it, and that the system remains fair and sustainable.
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