Responding to today’s Government announcement of a new tax-free childcare voucher scheme, Sarah Jackson, Chief Executive of Working Families commented:

“It is good news that the Government have recognised the need to address the high cost of childcare and we’re particularly pleased to see new money has been found to support parents in work.

“However, we are concerned that three groups of parents, all of whom need support, do not miss out. “Employer Supported Vouchers filled a gap in childcare support by helping families when one parent was studying or retraining. They also provided vital support if one parent was made redundant – they enabled a family to keep a childcare place open while the out of work parent looked for work. We are concerned that help with the new childcare vouchers will be limited to families with all parents in work. It is important that families in these situations don’t lose out, and that support is available to those trying to get back into work.

“It seems strange that low income families remain in a means-tested scheme, while higher income families get a non-means-tested system. We’re pleased to see more help for those on Universal Credit, but would also like to see 85% costs paid for those in low paid, part time work: the announcement today doesn’t appear to provide extra help to those on the lowest incomes. Parents find it difficult to work out whether to claim help with childcare costs through tax credits or vouchers now. It isn’t clear how the two schemes will work together in future – will parents be able to choose which support to claim?

“We’re also keen to see childcare costs covered for parents of older children. The cost of after school care has risen fast, and holiday childcare is a real problem for low income parents which may force parents – particularly those with disabled children – out of the labour market. The current Employer Supported Voucher scheme is available to children up to 15 years old (or 16 if disabled) but the new scheme will only be rolled out to 12 year olds at some distant point in the future.”