Assessing the proposal to cut £5 billion from Child Tax Credit

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Tax and Welfare

Last week, the BBC reported that the government was contemplating a major reduction in Child Tax Credit, in order to go part way towards meeting the £12 billion in working age welfare benefit cuts that it has committed to finding by 2017/18. The report suggested that the government was considering reducing the value of the … Continued

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After Labour’s offer, the political battle on childcare has heated up

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Tax and Welfare

Earlier this week, Labour retook the initiative on childcare with the announcement of a major extension in free care for three-and-four-year-olds. Having been the party that established childcare as a new frontier of the welfare state when in government, Labour’s lack of a clear policy direction over the last year had left room for the … Continued

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What to make of Labour’s childcare announcement

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Tax and Welfare

Now is a good time to talk about childcare. Costs are rocketing but incomes are not. All the while childcare support has been cut. None of this has passed by lower income families who are struggling to make work pay. It is young mums in particular who are often forced out of the labour market … Continued

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Budget 2013: the new childcare support excludes families who most need help

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Tax and Welfare

In a time of austerity, why is extra money being directed towards families earning £300,000, and not those on universal credit? The centrepiece of the budget will be a new system of tax-free childcare vouchers (deliberately misnamed tax relief by the government) for middle- and higher-income families. Of the nearly £1bn earmarked for childcare, £750m is going … Continued

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What does the childcare announcement really tell us?

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Tax and Welfare

This post originally appeared on Gavin’s New Statesman blog Before we rush to dissect the government’s new childcare policy it is worth pausing to reflect on the very fact that in an unprecedented time of austerity a Conservative-led administration is proposing to spend near on £1bn on childcare. There are all sorts of caveats and problems … Continued

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