Catherine McKinnell – 2014 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Catherine McKinnell on 2014-06-16.

To ask Mr Chancellor of the Exchequer, what the cost was of the report entitled, Evaluating alternative market models for Tax-Free Childcare vouchers, prepared by Economic Insight for his Department; what assessment he made of this report’s findings and recommendations; and whether these recommendations informed the operation and design of his Department’s policy on tax-free childcare.

Nicky Morgan

Economic Insight were asked to consider whether there are any reasons why a private sector competitive market for childcare accounts might not function well. It compared it to a closed model in which there is competition to select a limited number of private sector childcare account providers. It concluded that there were no reasons why a competitive market could not function effectively as parents would be able to assess the differences between the offers and choose accordingly.

On the 23 May the Government published a further consultation on the delivery of childcare accounts within Tax-Free Childcare. The consultation will be open until 27 June and the Government will consider the responses alongside those to the first consultation before it makes its decision on the provision of childcare accounts.