Childminding: Tax Allowances
The question
To ask the Secretary of State for Education, what steps her Department is taking to support the financial sustainability of childminders in the context of the removal of the wear and tear allowance.
Answered by Olivia Bailey
This department is taking a range of measures to support the financial sustainability of childminding businesses and other early years providers. From April 2026, local authorities will be required to pass at least 97% of their funding directly to providers, an increase from 96%.
We are also working with local authorities and others to ensure that childminders and other early years providers can be paid monthly for the funded hours they provide, making their income more stable. From 1 November 2024, the government introduced new flexibilities to help childminders join and stay in the profession, supporting the government’s commitment to roll out expanded childcare entitlements and give children the best start in life.
In addition, the expansion of the early years entitlements will benefit childminders in different ways. The national average three and four-year-old hourly funding rate of local authorities is increasing by 4.1%, the two-year-old hourly funding rate is increasing by 3.3%, and the nine months to two-year-old hourly funding rate is increasing by 3.4%.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →