Childcare scheme to launch in 2015
The Government has confirmed plans to introduce a new Childcare scheme to support working families with their childcare costs. The new scheme will be launched in Autumn 2015 and will replace the current salary sacrifice scheme. Unlike its predecessor, the new scheme will be available to the self-employed and those on a minimum wage.
The new scheme which will be worth up to £2,000 per child each year, will be available initially to children under the age of 5 but will be expanded over time to include all children under 12. For every 80p in the £1 contributed by parents an additional 20p (or 20%) will be funded by Government up to a maximum of £10,000.
Parents will be able to choose their own voucher provider, as the new system will not be administered by employers and use the vouchers at any Ofsted regulated childcarer in England and the equivalent bodies in Scotland, Wales and Northern Ireland.
The scheme will provide support for families where both parents are working and not in receipt of the Childcare Element of Working Tax Credits/Universal Credit. In order to be eligible to use the scheme neither parent can earn more than £150,000 a year.