New Childcare Allowance 2015 Query!

[Deleted User]

So currently my partner and I can save £933 a year EACH with the childcare vouchers, a total of £1800, and this new scheme mean i'll be saving £1200 per child. A Loss of £600.

Is this right or have I gone mad?? :mad:

I give up with this government. And all these moany people banging on about working people getting benefits is unfair well hey lifes not fair, and i'll be losing out YET AGAIN for working and contributing.

speedyturtle

I can totally understand your frustration but i think you are doing the exact same thing which this current government want people to do which is to divide working people against people who are on benefits. I am not saying that everyone on the benefit is good or bad and i know some people/families are taking advantage of the system but not all fingers are the same. There maybe people who lost jobs in councils, police, army, government departments, stores like comet etc etc who might have no choice but to go on benefits so i dont think its about them. Its more about the current government who is giving millionaires the tax cuts and they are giving all the big companies a tax cut. Just an example, tesco or asda might get a tax cut but they are getting more and more of self service tills so they would make from both hands.

philby79

this is from the Guardian...

The £750m costs of the scheme will be funded by new money from the budget and by phasing out the Employer Supported Childcare (ESC), claimed by 450,000 families, which is offered by just 5% of employers. Parents who claim ESC will be able to remain in the scheme, though this will not be open to new claimants after the launch of the new scheme, which will be more generous for parents with more than one child.

So it looks like you will be able to continue with what you are doing - my employer currently gives me the £243 worth of vouchers without me having to make any slary sacrifice so I am hoping that this is definitely the case. Can anyone confirm?

[Deleted User]

Ok forget the whole argument about benefits or low income vs higher earners, but if my calculation is correct, aren't MOST people going to lose out here? Why are the government insisting it's a great thing and why are people going mad about it!!?

Icequeen99

dalo1981 wrote: »

Ok forget the whole argument about benefits or low income vs higher earners, but if my calculation is correct, aren't MOST people going to lose out here? Why are the government insisting it's a great thing and why are people going mad about it!!?

Some people will be better off, some worse off. Few employers offer the vouchers, so it is better than nothing for those that don't.

If you can stick with what you have then it shouldn't be a problem.

It will get complicated when you take into account interactions with higher rate CB charge, Universal Credit and Tax Credits.

IQ

[Deleted User]

Also, they suggesting that having more children to one carer would reduce costs, there is no way that my nursery would reduce their daily fee, they will take the extra children and keep the extra profits and my son loses out!

philby79

dalo1981 wrote: »

Also, they suggesting that having more children to one carer would reduce costs, there is no way that my nursery would reduce their daily fee, they will take the extra children and keep the extra profits and my son loses out!

Sounds like you should consider changing your nursery if you fear they will resort to profiteering - have you spoken to them to see what they intend to do if and when the policy of increasing the number of children that an be looked after by each carer.

Darkstar

The key difference is the old scheme was only open to people who worked for an employer that joined the scheme, about 500,000. The new scheme is open to anyone that meets the eligibility criteria, i.e. both parents or guardians working more than 16 hours a week and not earning more than £150K, about 2,500,000. Secondly the old scheme suited one or maybe two children. The new scheme will suit families with three or more.

I think it is important to remember that both schemes will run in parallel for a while, how long is yet to be seen. This means you can choose to stay in the current scheme if it suits you better.

johnnyl

surely childcare is already paid via the tax credits system.

If tax credits pays 70% of the childcare costs and then a further 20% is subsidised then why not just pay 90% via tax credits?

Im confused

bloolagoon

johnnyl wrote: »

surely childcare is already paid via the tax credits system.

If tax credits pays 70% of the childcare costs and then a further 20% is subsidised then why not just pay 90% via tax credits?

Im confused

Not all receive 70%, it depends on household income, some receive less, others receive none.

Icequeen99

johnnyl wrote: »

surely childcare is already paid via the tax credits system.

If tax credits pays 70% of the childcare costs and then a further 20% is subsidised then why not just pay 90% via tax credits?

Im confused

You can't claim them both together. Currently you can't claim vouchers and the TC support (you have to deduct the voucher amount from your childcare costs for tax credits). Similarly with the new scheme you can't get it if you claim tax credits or UC.

IQ