Tax-free childcare to be phased in and childcare vouchers extended


Budget 2016:  The government has announced that the new tax-free childcare scheme, to take effect from early 2017, will be rolled out throughout the year.

The new scheme, which was first announced in 2013’s Budget as a replacement to childcare vouchers, will take a phased approach and allow parents of the youngest children to enter the scheme first.

All eligible parents will be brought in by the end of 2017.

The existing childcare voucher scheme will remain open until April 2018 to support the transition between the two schemes.

These schemes are in addition to the increase of free childcare entitlement from 15 hours to 30 hours per week for working families with three- and four-year olds from September 2017.