Resistance mounts against plans to axe tax relief on childcare vouchers

Resistance against the government’s decision to scrap tax relief on childcare vouchers is mounting and a petition set up against the plans has received thousands of signatures.

Childcare providers such as KiddiVouchers are urging employers and parents to sign the official Downing Street petition, which will be open until 29 September 2010.

Meanwhile, provider Busy Bees, has branded Labour’s plans to end tax relief, which results in up to £1,195 for a working parent, on childcare vouchers as a disgrace.

Simon Moore, managing director of Busy Bees Childcare Vouchers, said: “Gordon Brown pledged to protect middle England, but it is these people who are to suffer the most if the childcare vouchers scheme is scrapped.
“From our figures alone, NHS and Primary Care Trust (PCT) staff can be seen to be benefiting from an annual saving totalling £12 million across 14,000 staff members. In addition, the savings gained for the NHS and PCTs as an employer come in at £3.5 million per year.

“It is a disgrace that working parents may lose tax relief on childcare vouchers and we are fighting for the rights of working parents, to keep this benefit and the savings that are so vital for so many.”

Paul Bartlett, head of rewards and benefits at Grass Roots, said: “Making childcare places for two year olds more accessible is an objective to be welcomed, but this should not be at the expense of withdrawing tax relief for hundreds of thousands of hard-working families.

“The current taxation arrangements for childcare provision, introduced by the Labour government, have been a major incentive for talented working parents to return to work, following the birth of a child. The take-up results speak for themselves.”

Share your views on this news on the Employee Benefits online forum.

Read Buyer’s guide to childcare vouchers

For more articles on childcare click here