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Tax-free childcare delayed until 2017

Tax-free childcare (TFC) has been delayed until early 2017, following a succession of legal challenges from childcare voucher provider companies.

The Government announced last year that the new scheme will be run by sole operator National Savings and Investments (NS& I). The plan was to phase out all other childcare voucher schemes.

Voucher providers mounted a legal challenge against how the Government’s new scheme would be delivered. Although the Supreme Court has now ruled that the scheme is lawful, the court proceedings have resulted in a delay to the scheme.

Liz Bayram, Chief Executive of the Professional Association for Childcare and Early Years, said:

“While it is disappointing to learn that any scheme that helps parents cope with the cost of childcare is to be delayed, it is imperative that the Government gets this right.

“Our Building Blocks survey revealed a current funding system that was too complex; with both providers and parents describing difficulties in understanding and accessing all three forms of current childcare funding.

“We will continue to work with the Government in ensuring that this new scheme works effectively for childcare providers and parents, alike.”

For advice about paying for childcare from PACEY, visit our Paying for Childcare pages in the Parents section of our website.