Question to the Department for Education:
To ask the Secretary of State for Education, what assessment her Department has made of the potential impact of the £100,000 earnings threshold for free childcare on incentives to work.
It is our ambition that all families have access to high quality, affordable and flexible early education and care, giving every child the best start in life and delivering on our Plan for Change.
The working parent entitlement aims to support parents to return to work or to work more hours if they wish. To be eligible, parents must expect to earn the equivalent of 16 hours a week at National Minimum Wage and less than £100,000 adjusted net income per year. The minimum income threshold rises in line with National Minimum Wage increases at the beginning of the financial year.
The government needs to use public funds in a way that provides value for money and considers it reasonable to target this funding at those individuals earning under £100,000 adjusted net income. Only a small proportion of parents earn over the £100,000 adjusted net income maximum threshold. Parents who earn over the maximum income threshold can still claim the universal 15 hours for three and four-year-olds in England.