Child Tax Credit Childcare Element & new government plans

hulahoop09

Hiya

I have like others maybe been interested how the government plan to help working parents with childcare costs. At the moment we luckily dont have to pay childcare thanks to family but this may change shortly. Also we were planning on having another baby in the not too distant future. We would get varying help with childcare costs (depending obviously on how many children etc). Our joint income is approx 28k.

One of the first is expected to focus on extra help for families struggling to meet childcare costs.
Mr Cameron and Mr Clegg are said to be considering a scheme that would allow families to claim up to £2,000 per child every year from their tax bills to cover the cost of childminders and nurseries.
It could mean working parents becoming entitled to claim a flat-rate tax allowance to help cover the costly bills in a move that would replace the £700m voucher and allowances scheme.

That is the information I have read. What I am curious to know if anyone has an idea is would this top up the childcare element of child tax credit or replace it?

Thanks very much!!

DaisyFlower

I think its to replace tax credits, they are going soon anyway with the introduction of UC.

The best thing to do is to base costs in your earnings only and any contribution you get at the time consider it a bonus. Relying in benefits to work out affording a child is madness as they can be pulled at any time.

princessdon

I assumed it was to replace the salary sacrifice voucher scheme. It can't replace the Tax Credits as it refers to a taxation benefit and many who claim childcare don't earn enough to pay tax so it would leave them without payment.

MikeR71

But the voucher scheme is already very good. Replacing it with this new scheme will not add much benefit, if any at all. In actual money, the new scheme might even make the situation worse?

princessdon

MikeR71 wrote: »

But the voucher scheme is already very good. Replacing it with this new scheme will not add much benefit, if any at all. In actual money, the new scheme might even make the situation worse?

It's good if you employer offers it, if your childcare accepts it. My employers scheme isn't not accepted by the out of schools.

reggy321

Hi, Sorry if this question has already been asked but i am unable to locate it on the web anywhwere!

My partner and myself are due to give birth to our first child in May this year. Our combined salary (excluding bonus & overtime) is £45k per annum. I was just wondering with the new Child Tax Credits coming into place in April 2013, are we eligable for any benefits? I have never claimed a single benefit my entire life and to be honest, it will be a savings account for a Uni fund or what ever he wants to do with it. Any help or advise would be great! Thanks in advance.