"Ed Balls' reply to my Childcare agitation. Suggestions needed." blog discussion
Former_MSE_Lawrence
Posts: 975 Forumite
This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.
Read Martin's "Ed Balls' reply to my Childcare agitation. Your suggestions urgently needed" Blog.
Click reply to discuss below.
0
Comments
-
I think firstly, try to spread awareness by writing some sort of article on the main MSE website, and linking to it in the email, explaining clearly that it shouldn't deter people from applying for the benefits to which they're entitled, basically explain it as you already have done.
Continue to badger Ed Balls (in the nicest possible way).
This point you made "Paying by voucher should be neutral at worst. If the above doesn’t work, it should be incorporated into the system that there is no way you could be worse off if you use vouchers (ie the lost of tax credits is no more than the gain from vouchers) at least it would mean those who didn’t realise weren’t actually losing out." I think that is the one which is most likely to get a positive response and it's also definitely common sense (not having a go at you, more surprised that the people who should have seen this before never thought of it in the first place and prevented it from happening.)0 -
In my previous job, I badgered my employer (ironically a government body) for 3 years to introduced the voucher scheme, getting the union involved as well. They kept coming up with excuses not to do it and every time I would go away and investigate their claims and come back and rebuff them.
After 3 years, they finally came round and I was invited to be the employee representative tasked with deciding which voucher provider we would use. I seem to remember all off them mentioning that people should consider the effects in their tax credits before joining the scheme and should contact their tax office for advise, simply because, as Martin says, its a complex system.
The month the company started the scheme I actually left so got no benefit from it, but my new employer had the scheme running already and again in their info they say much the same thing. However I guess a lot of people don't really think about the effect. Since we don't qualify for tax credits, its never been something I've really thought about.0 -
How about money for childcare costs if there are 2 parents and one of them stays at home to look after the kids?!0
-
WelshGandalf wrote: »How about money for childcare costs if there are 2 parents and one of them stays at home to look after the kids?!
You mean along the lines of a variation on carers' allowance. I think it's a good idea. I was actually returning to this thread, on the back of reading some other horror stories on the Benefits board, because I think that too many people these days breed but do not actually parent their children. The amount of semi feral youths knocking about in my area, with appalling manners and a lack of respect. I think that the job of being a parent is an important one, and also psychological studies show that kids who spend time with their parents and are nurtured do better in life than those who are ignored or palmed off onto other people. By returning to work, one parent (in the case of a couple) would be likely to claim tax credits and this voucher scheme for childcare. It could work out cheaper, in fact, to let the parent stay at home and just pay them some sort of means tested benefit. Then again, that could end up penalising those who WANT to return to work. Maybe operate the system as above until the child reaches primary school age, and then an improved tax credits system would take over.0 -
This is an area fraught with complex and difficult issues. While the Government is committed to assisting it is becoming so complex and fragmented.
The sources for assistance are even more complex - so apologies for below and I will try to keep it simple:- Parents can get £243 EACH as part of their benefit - aids higher earners as relief is greater AND is better for couples over single parents. - MOST use vouchers (it can be done other cheaper ways) which are paid to their carer - for providers its complicated and can cause cash flow problems.
- Tax Credits are paid to parents and then passed on to their carers - but its based on the last years employment and current childcare - it is paid in arrears - where most childcare is paid as you use it or in advance - given TC are aimed at lower income families this can cause problems with cash flow (and sometimes there is a temptation to use the cash coming in to meet other immediate needs and this then causes both parent and carer problems)
- At 3 - or even 2 now - parents can access 12.5 hours (and possibly 15) hours for 38 weeks (as it fits the school terms) 'free' nursery education which can be provided by their carers - who then receive £3 (ish) on average and hour for their care - but it is received from the Local Authority - who often pay a bit up front and a bit in arrears - based on a paper trail....
- Care 2 Learn provide some assistance - which is provided direct to providers to support learners - but soem will only pay IF THE PARENT ATTENDS COLLEGE so if a college places a child with a carer - but then the parent doesn't attend - they don't pay.....
- DWP does assist sometimes - similar issue about return to work
If we are really trying to improve the quality of the care we give the child so that they can be given the best start - the funding needs- to be clear - so anyone can access it
- given through one route - so it is clear what can be got and it goes to the carer not via a third party (voucher company - parent - Local Authority - Government Department)
- simple to access - so that the minimum time is spent on administration and the maximum time on caring for children.
A single payment direct to the provider based on a simple usage is too easy - and I suspect most would be happy to wait or help drive this through....
(PS I just heard of an employer CHARGING 3% to an employee for introducing childcare assistance!!)0 -
Thanks for fighting the side of the parents, children do have an impact on the finances, so it should be made easier to find out what help your are entitled to and in what way. Thing is, the tax credit system is so obscure, and so prone to errors, that you can't work out anything. It would be nice for the government to have a clearer system, so that you know how much you are entitled to and you can play with the figures etc so you can make the choice that is best for you. That way, you can see if you're being done (after all you don't know if what you're getting is right) or you avoid the commoon problem of having been overpaid because you don't know what you should have had in the first place. TBH when you send a letter notifying them of a change in circumstances it takes three rounds to get it right, and you get sent 6 notification forms etc it's such a waste of time and energy !0
-
I have tried on numerous occasions to find out what help I can get with childcare from the tax credits office. It appears to be easier to get blood out of a stone than to get a simple "yes you would get blah blah help on such and such and ncome"
The general answer I seem to get is " we cant tell you until you are actually workng as we have to change your income details and then work out a new claim"
Bascally, start workng and accept a job before you find out if your eligable. this isnt acceptable, I WANT to go back to work but wont take a contract until I know that I will be able to afford childcare.
Tax credit allowances seem to be plucked from the air constantly, we are constantly in arrears even when we call the office to let them know a chane in circumstances.
A definative banding system needs to be introduced for the amount of help you get for every £1000 income! Surely that cant be too hard?
At the minute its hard to trust a ssystem where even the staff dont seem able to how they work out tax credits!!!0 -
As a person with a relative who owns a private day nursery, the problem I have is that the tax credit not paid directly to the childcare provider. I have heard of numerous cases where parents are claiming the money, bringing the child to nursery, and then not paying the fees and either claiming they can’t afford it (even though they have the government's money) or disappearing altogether to pull the same scam on another nursery. Childcare providers shouldn't have to be calling in bailiffs to claim back money that is rightfully theirs!0
-
I think the idea above is an interesting one, and maybe worth option 4?
i would be extremely happy for my childcare tax credit to go direct to my childminder and I pay the difference.
If money goes direct to the childminder, then I would not be eligible to buy vouchers. No extra expense for government.
If income is above tax credit threshold, then voucher scheme is applicable to pay for childcare.
As a stop gap solution, can a leaflet be written that gives simple figures of where tipping points are? Or maybe tax credits can be trained to talk to those who intend to claim vouchers as well and ask the right questions to ensure the person gets the best result for their situation? Like the blog says, having 2 bodies doing this is not helpful and it isn't in the voucher issuers interest to tell you the best situation for you.
No easy solution. But having a meeting with someone in government who can make changes is a good step forward. Martin is the Jamie of the financial world!Who made hogs and dogs and frogs?
0 -
secretshopper wrote: »As a person with a relative who owns a private day nursery, the problem I have is that the tax credit not paid directly to the childcare provider. I have heard of numerous cases where parents are claiming the money, bringing the child to nursery, and then not paying the fees and either claiming they can’t afford it (even though they have the government's money) or disappearing altogether to pull the same scam on another nursery. Childcare providers shouldn't have to be calling in bailiffs to claim back money that is rightfully theirs!
Landlords are in exactly the same situation now that the way Housing Benefit is issued has been changed (though that's a separate gripe entirely!). But when it's payment for the place you live, there's normally only a single monthly rent payment involved and that's unlikely to change more than once a year, whereas with childcare a parent might be using a nursery for a couple of days a week and a childminder at other times, and the hours (and therefore fees) are likely to vary depending on the time of year, so making payments directly to childcare providers would be more complicated.
Not saying that I don't appreciate your point though!0
This discussion has been closed.
Categories
- All Categories
- 343.1K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.2K Work, Benefits & Business
- 607.9K Mortgages, Homes & Bills
- 173K Life & Family
- 247.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards