More than 100,000 families of over-fives could lose £18,000-worth of help with childcare costs under Tory plans

At least 100,000 families (i) with children over the age of five (ii) could miss out on up to £18,000-worth of childcare help under a new government scheme, research has established.

The families currently get childcare vouchers through their employers - but will not be able to transfer over to a new coalition scheme which is expected to apply from Autumn 2015 to families with children born after September 2010, according to figures uncovered by Lucy Powell, Labour’s Shadow Children’s Minister.

In addition, the research suggests, some 1.2million families (iii) with children over the age of five could miss out on any help at all after changes are brought in by ministers.

More than 100,000 families currently receiving Employer Supported Childcare vouchers employer supported childcare vouchers could lose out on up to £18,000 (iv) of help with the costs of childcare under the new tax-free childcare scheme being introduced. The current employer-based scheme is available for individual parents with children up to the age of 16 - so  parents with children over five in receipt of a childcare voucher who move jobs  could lose out on 10 years'  worth of support.

Figures from the House of Commons Library show that these families could lose out on £18,000 if both parents are in receipt of vouchers and they move jobs. If one parent gets vouchers  moves job they could lose £9,000. Many more families with children aged between three-and-a-half and five and who currently get vouchers are also set to fall foul of these changes.

Figures from the Family and Childcare Trust (v) show that the average cost for an afterschool club is £1,830 a year. Childcare costs for families of children aged 5-11 picked up after school by a childminder are even higher at an average £2,470 per year.

A further 1.2 million families with school age children could miss out on up to £6,000. Families with a child born before September 2010 are not eligible for the new tax-free childcare scheme which will initially only cover under-fives when it is introduced in Autumn 2015.

The government’s new taxfree childcare scheme will be introduced in Autumn 2015. Families earning up to £298,000 will be eligible for £1,200 per child. Research by the IPPR shows that the new scheme will do very little to contain spiralling childcare costs with parents paying more of their disposable income on childcare in 2018 (vi)  despite this scheme.

Lucy Powell MP, Labour’s Shadow Minister for Childcare and Children, said:

“Labour introduced tax relief for childcare and we support investment in childcare. However, David Cameron’s plans offer no help with childcare costs now. Families facing a cost-of-living crisis have seen childcare costs rocket 30 percent since 2010 as early years places have fallen and ministers have cut financial support. Families with children born before September 2010 will not benefit from this scheme and are in danger of losing their current entitlement. Whilst I welcome any extra support for families in meeting ever increasing childcare costs the government should come clean on the fact that many families, especially with children born before September 2010, will not only not benefit from this scheme but will actually lose out on current support.”

“Labour would extend free childcare for three and four-year-olds with parents in work from 15 to 25 hours. This would be on top of the tax-free childcare scheme and worth £1,500 per child, per year. Labour would also introduce a primary childcare guarantee to help parents manage before-and-after-school childcare, helping families balance work and family life.”