Nursery World - Call for high earners to be 'stripped' of the 30 hours and Tax-Free Childcare

A new report proposes lowering the upper eligibility threshold for the 30 hours and Tax-Free Childcare (TFC) to boost support for families under universal credit.

In their joint report, the Centre for Social Justice (CSJ) and Save the Children, say that 30 hours and TFC should be ‘stripped’ from high earners and the money used to raise the childcare element of universal credit (UC) from 85 per cent to 100 per cent of eligible costs, supporting low-income families. The cost of funding this proposal would be around £100 million.

The report estimates that lowering the threshold for 30 hours and TFC from £100,000 (the current threshold) to £60,000 per person would produce savings of £158 million (see table below).

table

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