mwillis's blog

Tax-free childcare - what's in it for low-income families?

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By Mark Willis, Welfare Rights Adviser at CPAG in Scotland

The government has been busy promoting its new tax-free childcare scheme, with its own Twitter hashtag, infographics on Flickr, and even a Facebook photo album. These proudly boast that a working family with two children can save up to £4,000 a year. The ‘top ten things to know about tax-free childcare’ announces the scheme will be simpler, fairer, and available to families earning over £52 a week and not more than £150,000 per year. However, low income families need to know that tax-free childcare offers them nothing - and could even leave them significantly worse off if they apply for it.