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Government announces Tax-Free Childcare provider

The Government have published their response to the consultation on Tax-Free Childcare accounts, where they have announced National Savings & Investments, a large savings organisation, as the sole provider of childcare accounts.

Once the Tax-Free Childcare scheme is introduced in Autumn 2015, parents will pay money to be used for accessing childcare in to a childcare account, where the Government will top up the amount of money in the account by 20p for every 80p the parents contribute. This money will then be directly paid to childcare providers.

Following last year’s wider consultation on the scheme, this consultation sought views on several different models for childcare accounts. After discussing the issue with members on PACEY Local, we recommended in our response that regardless of the model the Government chose the system is simple, secure and designed with childcare providers in mind. Looking ahead, we will continue on your behalf to discuss with the Government how the details of the new scheme can best be communicated to childcare professionals and parents alike.