UK chancellor faces calls to reform strict childcare income limit

The short version

• Researchers from the Centre for Tax Reform are urging UK Chancellor John Healey to address the £100,000 childcare earnings threshold.[The Guardian]
• Families lose access to 30 hours of free weekly childcare entirely if one parent earns more than £100,000, prompting workers to suppress earnings or cut hours.[The Guardian]
• Proposed reforms include tapering the benefit gradually or providing 15 hours of childcare above the threshold before the 28 October budget.[The Guardian]

Key facts

• Parents lose all entitlement to 30 hours of weekly free childcare if one earner surpasses £100,000.[The Guardian]
• CenTax analysis found about 1,000 families suppressed earnings below the threshold in 2022, a figure projected to approach 12,000 by 2030.[The Guardian]
• CenTax proposed either tapering the benefit at 28p per £1 above the limit or providing 15 hours above £100,000 at an estimated cost of £210m by 2030.[The Guardian]
• John Healey is scheduled to deliver his first budget on 28 October.[The Guardian]

Sources

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.

• UK chancellor urged to remove £100k childcare ‘cliff edge’ prompting parents to cut work hoursThe Guardian - World