Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, if he will make a comparative assessment of the levels of financial support available under the current system of employer-supported childcare and tax-free childcare for a (a) single parent paying the basic rate of tax who has one child and who spends under £4,500 per annum on childcare, (b) single parent paying the higher rate of tax who has one child and who spends under £3,000 per annum on childcare, (c) single parent paying the basic rate of tax who has two children and who spends under £4,500 per annum on childcare, (d) single parent paying the higher rate of tax who has two children and who spends under £3,000 per annum on childcare, (e) two-parent household paying the basic rate of tax which has one child and which spends under £9,000 per annum on childcare, (f) two-parent household paying the higher rate of tax which has one child and which spends under £6,000 per annum on childcare, (g) two-parent household paying the basic rate of tax which has two children and which spends under £9,000 per annum on childcare and (h) two-parent household paying the higher rate of tax which has two children and which spends under £6,000 per annum on childcare.

A summary of the support available under Tax-Free Childcare and Employer-Supported Childcare for different family groups is provided in ‘Delivering Tax-Free Childcare: the Government’s response to the consultation on design and operation’ (Table 2A) at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/318953/PU1607_Tax_free_Childcare_response.pdf.

Tax-Free Childcare will replace Employer Supported Childcare (ESC) but parents who are using ESC will be able to continue to do so while they remain with their current employer and the employer continues to offer it

When the scheme is implemented guidance and support will be provided to help parents make an informed choice about which scheme to access, based on their individual circumstances. This will include an easy-to-use online calculator to show parents what support they may be entitled to.