Childminding: Tax Allowances
The question
To ask the Secretary of State for Education, what assessment has been made of the potential impact of removing the 10% wear and tear allowance for childminders from April 2026 on the financial sustainability of home-based childcare provision; what consideration has been given to the potential effects on recruitment and retention in the early years workforce; and how this change aligns with her childcare expansion commitments.
Answered by Olivia Bailey
The expansion of the early years entitlements is set to benefit childminders. The national average three and four-year-old hourly funding rate for 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%. Childminders may also benefit from the expected increase in demand for places.
We will work in partnership with the sector to raise the value of the profession, promote continuing professional development and give early years educators the recognition they deserve, making sure childminders are valued and supported with fair reward and recognition and more support from day one.
Maxing Tax Digital standardises the way that sole traders record and claim business expenses. It should benefit childminders, as it means that any business expenses related to childminding will be included in their tax calculations. We are, however, aware of the strength of feeling amongst childminders and those who work with them. We have been talking regularly to Coram PACEY, a professional association dedicated to supporting home-based childcare professionals, HMRC and others to understand the issue, the effect that it is having on the childminding sector and to make sure that the concerns of childminders are clearly understood.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →