Labour analysis from the Office for Budget Responsibility (OBR) has revealed spending on the tax-free childcare scheme is projected to be £600m lower than expected over the next four years. Government has then suggested that these leftover funds would be returned to the Treasury, rather than being spend elsewhere in the early years sector.
Liz Bayram, Chief Executive at PACEY comments:
"Any childminder, nursery or pre-school will be angry to read that £600m dedicated to supporting families with childcare costs has not only been under-used but could then be returned to the Treasury. At the very least it should be repurposed to allow more families to get support, through increased funding for early education, early years pupil premium or any number of other areas. It also raises the question how this underspend has arisen? Do we need to revisit the criteria for tax free childcare when many low income families don't qualify and money goes to waste."
Find further support on 30 hours and Tax-Free Childcare.