Childcare Scheme To Help Working Parents

Families where both parents are in work could soon be offered taxpayer-funded help with childcare.

The Government is to announce a formal consultation on the introduction of a £1bn scheme, set to be introduced in 2015.

It is proposed that the online vouchers will be worth up to £1,200 per child, according to the Sunday Telegraph.

For every 80p families pay in, the Government will put in 20p up to an annual limit for each child of £1,200.

The support will benefit around 2.5 million households.

And even families with a combined income of up to £300,000 will be able to get the payments.

The issue of childcare has proven tricky for the coalition

However, about 1.2 million households where one parent - mostly mothers - stays at home will not be eligible for the help.

The scheme will be introduced for children under five by 2015 and extended to cover all those under 12 by 2020, under current plans.

Lower-income families where both parents work will get extra payments that will cover up to 85% of their childcare costs, compared with the current 70%.

The Treasury will invite comments on the plans on Monday.

Sharon Hodgson MP, Labour's shadow minister for children and families said: "Only David Cameron's Government could be so out of touch that they expect families to be grateful for help with childcare in 2015 when they've already seen costs spiralling and support taken away.

"This Government has hit hardworking parents. Families with two children have already lost up to £1,500 in childcare tax credit.

"This Government promised to be the most family friendly ever but hardworking parents have lost out while millionaires get a tax cut."

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