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Government considers childcare tax breaks…finally

Government considers childcare tax breaks…finally
Nanny McPhee

Could the government help us all afford Nanny McPhee?

At last – the government has recognized that one of the biggest issues with parents (mainly mums) working is the cost of childcare. After all, it hardly makes sense to return to a job after maternity leave when you end up losing money after paying for a childminder, nursery or nanny, plus your commute, and keeping up whatever work wardrobe your job requires.

The government is considering tax breaks for childcare for working mothers, in a bid to woo them. (Read the story in The Sunday Times – subscription required.)

The group is also looking to bolster the number of childminders, which has fallen from 98,500 in 1997 to 56,365 last year, according to the Sunday Times.

It’s no surprise to the longtime childminder that we used. We met my daughter’s former childminder in the street a few weeks ago and she said she was getting out of the business. She has no shortage of parents in need, but the form-filling out forms and council-dealing has become too onerous and time-consuming.

When I met Camila Batmanghelidjh she described our situation in the UK thus: we’ve dismantled informal childcare with regulations but haven’t supported formal alternatives with anything systematic, like subsidies similar to those Swedish ones we’re always talking about in awed tones. Here, each family is on its own.

Right now the government is only considering the tax breaks, which as a first step may be for £2,500 a year. That’s not a lot for quality childcare for parents working full-time, but it would be a start. Just think, being able to claim for your childminder like you claim for your chauffeur.

About Jennifer Howze

Jennifer Howze is the Creative Director and co-founder of BritMums. She blogs about family travel at Jenography.net, tweets at @JHowze and Instagrams at @JHowze. Previously, she wrote the Alpha Mummy blog at The Times and as a journalist has contributed to The Times, The Guardian, The Independent, The Wall Street Journal, Travel & Leisure, Budget Travel, CNN.com, Allure, SELF and Premiere, among others. She won The Maggie Award from the Planned Parenthood Federation of America for a health article in Seventeen magazine.

MsXpat

Thursday 26th of January 2012

Long time coming but they are only 'considering' meanwhile many of us have had to become stay at home moms due to the cost of childcare.

A Modern Military Mother

Monday 23rd of January 2012

It's my long term ambition in life to make childcare 100% tax deductable. I think it's criminal and repressive that it isn't. This for me is the only satisfactory solution.

Jennifer Howze

Monday 23rd of January 2012

The tax deduction thing is maddening. And if you hire a nanny you not only pay tax on the income, then you have to pay employment tax for the nanny, which means thousands of pounds every several months (if you're paying them a decent wage).

Lisa Gusto

Monday 23rd of January 2012

It's a start I suppose.

They have a loooong way to go before it can match what the swedish goverment offer parents, Check out what sort of help scandi parents get!

http://www.romanianmum.com/2012/01/life-in-uk-by-lisa-gusto.html

XX Lisa

Jennifer Howze

Monday 23rd of January 2012

Lisa, I don't know whether to laugh or cry at the disparity between the situation here and in Sweden. Night nurseries! Care that takes into account working hours! Good state schools!

Where's my Swedish phrase book?

Ramblings Of A Suburban Mummy

Sunday 22nd of January 2012

It will help with the fact that they are messing with child benefit I suppose! I'll be pleased if they bring this in!

Jennifer Howze

Monday 23rd of January 2012

There are so many strands to child-related tax issues. They should simplify it in a way that takes into account the realities of family life.

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