Cost of cuts to childcare

Low to middle income families face a fight on their hands to stay in full-time work if proposed childcare cuts go ahead.

Leaked documents reveal plans to cut by almost a half the amount of childcare allowance for some families, so a family with two or more kids will have their claim cut from £210 to about £120 a week.

The idea behind work pensions secretary Iain Duncan Smith’s proposal (remember him?), is that those who work less than 16 hours a week will get some financial aid with the kids. But without more money in the pot, others may have to pay for the change, and low to middle income earning families could bear the brunt of this reform.

Labour MP Karen Buck is concerned about the proposals:

‘Affordable childcare is essential if parents are to be able to go to work – and if work is to be made to pay,’ she said.

’Now the government is cutting the maximum help available with childcare costs and trying to stretch what they do provide further, to cover more people in part-time work, seemingly at the expense of those needing to work longer hours, or facing the highest childcare costs.’

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