Government retreats from plan to help families with childcare

Suggested Topics

The Treasury is attempting to water down plans to give tax breaks and "free" state-funded hours of childcare to millions of working families.

The proposals were due to be announced as part of the Government's mid-term review and help off-set criticism of the decision to withdraw child benefit from taxpayers earning over £60,000 a year. At the same time Elizabeth Truss, the minister responsible for childcare, was due to announce new rules to allow nurseries to look after up to eight children for each member of staff. Currently the limit is four.

It was hoped that together the moves would substantially bring down the cost of childcare which currently sees parents spending more than a quarter of their income on looking after their children while they are at work. But the Treasury is understood to be concerned at the cost of the proposals – which could be worth around £2,000 a child – could lead to thousands of stay-at-home mums going back into the workplace.

This, officials fear, could create a funding black-hole at a time when budgets across all Government departments are under intense pressure.

At the same time the Liberal Democrats are worried that the plans to relax child/staff ratios could damage the standard of care provided. Nick Clegg has made it clear that he will refuse to sign off on any policy "which jeopardises standards."

So far the Coalition's ruling 'quad' of David Cameron, George Osborne, Mr Clegg and Danny Alexander have met twice in an attempt to iron out the differences between the Treasury and the Department of Education.

But sources said little progress had been made. Government sources last night expressed frustration at the delay.

"This was supposed to be announced at the same time as the child benefit cap was introduced and show that we doing something for hard-working families," said one.

"But now it looks like we may not be able to work through all the issues before the budget."

Independent Comment
blog comments powered by Disqus
News in pictures
World news in pictures
Life & Style blogs

Your chance to live in Winnie the Pooh’s home

Plus London's buy-to-let hotspots and a new property portal

How can the mortgage market recovery be helped?

Guest post by Richard Sexton, business development director of e.surv chartered surveyors

Where do most millionaires live in the UK?

Plus lateral thinking and living on London's waterways

       

ES Rentals

    Independent Dating
    and  

    By clicking 'Search' you
    are agreeing to our
    Terms of Use.

    Day In a Page

    Johnny Marr talks relationships and reunions

    He's worked with Modest Mouse, the Pet Shop Boys and Beck, to name a few, and recently released his first solo album. So why, wonders Johnny Marr, do people still hark on about The Smiths?
    After the flood: From Haiti to Britain, one man has captured the devastation of our increasingly deluged lands

    In pictures: After the flood

    From Haiti to Britain, one man has captured the devastation of our increasingly deluged lands
    Death becomes her: Meet the very modern mortician who champions 'cool' funerals

    Death becomes her: A very modern mortician

    Ever considered baking a loved one's remains into a cake or putting their ashes in fireworks? If so, talk to Caitlin Doughty, champion of the alternative death industry.
    How long can the 'Keep Calm' trend carry on?

    How long can the 'Keep Calm' trend carry on?

    At first it seemed clever and cute. Then the 'Keep Calm' motif went mad, spawning endless offshoots.
    The man who built Brum: A lament for the demise of John Madin's Brutalist Birmingham

    John Madin: The man who built Brum

    The architect's buildings were supposed to leave an indelible, futuristic mark on his beloved hometown but they are now being inexorably torn down.
    School of chop: Learning the art of butchery at the Ginger Pig

    School of chop: Learning the art of butchery

    How do you butcher a lamb? Or make Mexican street food in a British kitchen? Christopher Hirst finds out.
    James Pembroke: The man who's eaten everywhere

    The man who's eaten everywhere

    Few people know more about restaurants than James Pembroke, who only spent five mealtimes at home during his entire childhood.
    A Berliner in 1963 – but did John F Kennedy once admire Adolf Hitler?

    A Berliner in 1963 – but did John F Kennedy once admire Adolf Hitler?

    The young JFK praised 'superior' Nordic races during visits to Germany
    Banned Iranian director Mohammad Rasoulof to attend Cannes Film Festival 2013, his first public appearance since prison

    Banned Iranian director to attend Cannes Film Festival

    Mohammad Rasoulof to make his first public appearance since being imprisoned three years ago
    Seeing the larger picture: Inspiring images of space

    Seeing the larger picture: Inspiring images of space

    An exhibition explores images how photography has shaped astronomy
    Eat Spam and carry on: Wartime pamphlets could teach us a thing or two about healthy, thrifty eating

    Eat Spam and carry on

    Wartime pamphlets could teach us a thing or two about healthy, thrifty eating
    Facial hair: Cat beards and the purrrsuit of excellence

    Facial hair

    Cat beards and the purrrsuit of excellence
    The 10 Best salt and pepper sets

    The 10 Best salt and pepper sets

    Whether they're for everyday use or to make your dining table look just right, it's worth getting a stylish shaker...
    Ferran Soriano: Predicting success if Manchester City 'vision' is followed

    Ferran Soriano: Predicting success if Manchester City 'vision' is followed

    Chief executive says trophies will come if a 'core' of suitable players is in place
    Thomas Müller: We couldn't handle losing a Champions League Final again

    Thomas Müller: We couldn't handle losing a Champions League Final again

    The Bayern Munich forward tells Tim Rich his side have to shed chokers' tag after two recent final defeats