Question to the Department for Education:

To ask the Secretary of State for Education, what assessment she has made of the potential impact of the removal of the 10% wear and tear allowance on the number of new childminders entering the profession.

The department is taking a range of measures to support the financial sustainability of childminding businesses and other early years providers. From April 2026, local authorities will be required to pass at least 97% of their funding directly to providers (an increase from 96%). We are also working with local authorities and others to ensure that childminders and other early years providers can be paid monthly for the funded hours they provide, making their income more stable. Furthermore, from 1 November 2024, the government introduced new flexibilities to help childminders join and stay in the profession, supporting the government’s commitment to roll out expanded childcare entitlements and give children the best start in life.

Under HMRC’s ‘Making Tax Digital’ system, childminders can still claim tax relief for things they buy, repair, or replace for their business, such as furniture, equipment, and household items. This change standardises the way that sole traders record and claim business expenses.

We are however aware of the strength of feeling amongst childminders and those who work with them. We have been talking regularly to Coram Pacey, HMRC and others to understand the issue, the effect that it is having on the childminding sector and to make sure that the concerns of childminders are clearly understood. The department emphasises its strong support for childminders, who continue to provide high quality and flexible early education, and do so in a way that families across the country greatly value.