Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, if he will list what assessments his Department has conducted since the Government announced its extension of Childcare Vouchers that determine whether low-income families will benefit more from either Childcare Vouchers or Tax-Free Childcare.

Families’ access to vouchers is dependent on whether their employer offers vouchers. A low income family whose employer does not offer vouchers will receive Tax-Free Childcare and therefore be better off. For other families, the comparative level of support is not determined by income level. It is linked to a number of factors such as how many children they have, whether their employer offers vouchers, their childcare costs and the age of their children. Tax-Free Childcare is more generous for families with more childcare and higher childcare costs. However, employees currently on vouchers will be able to remain on them when the scheme closes.

The government has introduced a range of measures to support parents on all incomes. For example, in addition to Tax-Free Childcare, the government has increased help with childcare costs through Universal Credit to 85% and introduced 30 hours free childcare for 3 and 4 year olds. Parents can use the childcare calculator to understand which offer is best for them.

The government is keeping Tax-Free Childcare under review and will continue to evaluate the effects. Additionally, we are conducting a programme of research and analysis which will help us evaluate the policy. This will be published once it is complete.