Childcare costs POLL: Should the Government do more to help parents? | Personal Finance | Finance
One in four parents spend more than 75 percent of their take-home pay on childcare, while one in 10 breaks even or ends up with a loss, according to a survey of 24,000 parents by the charity, Pregnant then Screwed.
All three and four-year-old children in England are eligible for 15 hours of free childcare per week in term time, while some children of working parents are entitled to 30 free hours per week. Some circumstances also allow two-year-olds to have 15 hours of free childcare.
READ MORE: Thousands of parents to get childcare support boost
The tax-free childcare scheme means that for some working families, the Government contributes £2 for every £8 a parent pays, up to a maximum of £2,000 per child per year or £4,000 for disabled children.
Chancellor Jeremy Hunt is expected to announce more support for parents claiming Universal Credit in his Spring Budget on Wednesday, March 15. The plans are due to offer childcare funding upfront and increase the maximum amount parents can claim for childcare.
At present people in England, Scotland and Wales on the benefit pay childcare costs upfront and claim a refund of 85 percent of the total cost. This is capped monthly at £646 for one child and £1,108 for two and remained unchanged for the last 18 years.
The Institute for Fiscal Studies products that “tens of thousands” of families could benefit from the changes.
A spokesperson for the Department for Education said last month that it is looking into options to improve the “cost, flexibility, and availability” of childcare with a focus on “improving outcomes for children”.
So what do YOU think? Should the Government do more to help parents with childcare costs? Vote in our poll and leave your thoughts in the comment section below.
