Childcare plans dismissed as 'au pair subsidy' for rich families
Labour says families with expensive nannies will benefit most from planned tax break, which offers 20% off cost of childcare

David Cameron visits Coin Street nursery in London. The PM will not benefit from the scheme himself but his spokesman would not say whether this was because his family income was more than £300,000 a year. Photograph: Pool/Reuters
Rowena Mason, Nicholas Watt and Patrick Wintour
theguardian.com, Tuesday 18 March 2014 13.04 GMT
David Cameron and Nick Clegg's plans to offer discounted childcare have been branded an "au pair subsidy" as families earning up to £300,000 will be eligible for the new scheme.
Labour said the richest families with expensive nannies would benefit most from the tax break, which offers 20% off the cost of childcare up to a maximum of £2,000 per child. To get this top amount, they would need to be spending £10,000 per child per year.
In contrast, the average family helped under the proposals will only get around £400 off their costs, based on estimates of 1.9 million families claiming under the £750m scheme.
Lucy Powell, the shadow childcare minister, said this would not compensate families for previous cuts to childcare schemes under the coalition.
"The scheme will benefit the most those who have the highest childcare costs. They tend to be the highest earners," she told the Guardian. "The government is implying everyone will be £2,000 a year better off. But for the average family it will be less than £500. It will be only those with the highest childcare costs, like expensive nannies, who will get the full amount. It's a missed opportunity to create a system that is more progressive."
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http://www.theguardian.com/money/2014/mar/18/childcare-plans-dismissed-au-pair-subsidy-labour