HISTORIC PRESS RELEASE : Gordon Brown outlines plans for childcare vouchers [December 2009]

The press release issued by 10 Downing Street on 4 December 2009.

The Prime Minister outlined plans for childcare vouchers in a letter to Dr Roberta Blackman Woods MP and Ms Fiona Mactaggart MP.

He confirmed that all families who currently receive vouchers will continue to get the same support and that tax relief will be retained for any new childcare vouchers that are issued in the future.

Additionally, from April 2011, all new recipients of childcare vouchers will get the same income tax relief as basic rate taxpayers do currently in order to ensure that the system does not disproportionately benefit higher rate taxpayers.

The Prime Minister wrote to the members of Parliament saying:

“I have already made clear that no family currently in receipt of tax relief for their childcare vouchers will see any change in the support they receive. But following our discussions I can now also say that we will retain tax relief for new childcare vouchers issued in the future. However, there still remains a concern that a disproportionate benefit is accruing to higher rate taxpayers. So in order to ensure that this tax relief is given on a fairer basis to all families, we will ensure that all taxpayers get the same income tax relief as basic rate taxpayers do currently. This will take place from April 2011 and will not affect those receiving vouchers issued before that date.”

In the letter Gordon Brown said that the government will continue to make progress to provide free part-time nursery places for all two year olds whose parents want them, albeit at a slower rate.