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Family Solicitors

New childcare tax breaks for families expected in the Budget (17 March 2014)

Date: 17/03/2014
Duncan Lewis, Family Solicitors, New childcare tax breaks for families expected in the Budget

Sky News reports that the government is to introduce new tax breaks for childcare in the Budget.

A childcare tax break for families worth £1,200 will replace the current childcare voucher system, according to reports – and all working families would qualify, including parents who are self-employed.

The current system relies on employers agreeing the childcare tax break – and only 5% of UK employers have done so.

Chancellor George Osborne has warned that the next financial year will include another raft of Budget constraints to tackle the deficit – including more cuts to welfare benefits.

Benefit claimants are currently facing changes to the welfare system, which have led to a cap in out-of-work benefits of £500 per week per household. Some families who were in receipt of £800 have had to consider moving house to remain within the welfare cap. This can mean moving to another area and uprooting children from familiar neighbourhoods and their schools.

Housing benefit changes have also seen some families with a spare bedroom having to accept a cut in their housing benefit or try and move to a smaller property to be able to afford rents.

The government is constantly emphasising the importance of helping “hard working families” and helping Jobseeker’s Allowance benefit claimants back into work and the latest childcare tax breaks would underline this commitment.

Last week it was revealed that childcare can cost families more than their mortgage payments – and some parents may be choosing remain at home to care for their children rather than return to work because of prohibitive childcare costs.

Writing in The Sun, Mr Osborne said that the government’s tough measures to tackle the UK’s financial deficit and boost the economy had also helped families by keeping interest rates low so that mortgages remained affordable.

However, the cost of childcare has soared for working parents – putting a strain on some family’s finances or meaning that parents have to arrange their working schedules or work shifts to enable them to care for their children without paying for childcare.

However, the Chancellor has repeatedly said that, despite the hardships some people in Britain are facing, the government will stick to its plan to tackle the deficit:

Mr Osborne said:

“That plan has delivered economic stability and low mortgage rates for families and it has laid the foundations for economic recovery.”

The Chancellor will reveal his plans to reform childcare tax breaks in the Budget this Wednesday (19/03/14).

Duncan Lewis Children Solicitors

Duncan Lewis children solicitors can advise on a wide range of childcare matters, including legal advice on care proceeding and children taken into Local Authority care, child contact and residence following divorce, ancillary payments, child abuse and child abduction by a parent.

Duncan Lewis is a leading Legal Aid solicitor – and our children solicitors can advise on childcare and family issues under UK law or Islamic law.

For expert help with childcare law, contact Duncan Lewis children solicitors on 020 7923 4020.


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