Magazine |
U-turn likely on childcare vouchers

Caroline Flint led protests

The Government is expected to announce a dramatic u turn over its plans to scrap tax and National Insurance relief on child care vouchers, following pressure from former ministers including Caroline Flint, Estelle Morris and Patricia Hewitt.

The former ministers had written to the PM saying that scrapping the scheme which helps 340,000 parents would cost valuable votes.

Defenders of the scheme say they are popular with middle class families whose support will be vital in marginal seats.

Support for keeping the voucher system in its current form has been far reaching and a Downing Street petition had received over 81,000 signatures by the end of last week.

However, a Downing Street aide told The Sunday Times newspaper that ‘no decisions had been made’.

Karen Thomson, Associate Director of Policy, Research and Strategic Visibility at the IPP, said: ‘Our research shows that there would be a significant impact on employees; with nearly 80% of IPP members stating that they do not think organisations will continue running childcare voucher schemes after the removal of tax exemptions.

‘The IPP welcomes the Prime Minister’s climb-down on his plans, and does not think that his decision should be viewed as “embarrassing”. Rather, it should be considered a breakthrough in terms of the Government listening to the views of their constituents, working parents and defenders of the voucher scheme.’

The IPP has been campaigning to save childcare vouchers and has written to the Chancellor Alistair Darling to request that the Government reconsiders its proposal to abolish the tax and National Insurance relief on childcare vouchers.

20/11/09