Tax Free Childcare consultation response
29 July 2014
Following the recent consultation, The Government have now decided on the provision of childcare accounts within the new scheme.
As the Government confirmed in 2013, following an initial consultation exercise, the essential elements of the new scheme are that:
· Tax-Free Childcare will be introduced in autumn 2015, with the scheme open to up to 1.9 million working families within the first year of the scheme’s operation.
· Eligible families will receive 20 per cent support towards their childcare costs, up to an annual limit of £2,000 Government support per child.
The additional consultation, which ran from May to June 2014, focussed on the provision of childcare accounts within the new scheme.
The government has now announced that it has carefully considered the responses to both consultations and the evidence on all of the options, and has confirmed that National Savings and Investment (NS&I) will be the scheme’s account provider, working in partnership with Her Majesty’s Revenue and Customs (HMRC). The full consultation response document is available here .