Plans to bin childcare vouchers faces rethink

Published on Sunday 8 November 2009 21:40

A GROWING public backlash could force Prime Minister Gordon Brown to rethink plans to scrap childcare vouchers.

Number 10 has been hit by a protest from former ministers and a public petition on its website calling on Mr Brown to reconsider scrapping the tax break, worth up to 2,400 a year for parents.

So far, 73,850 have signed the petition urging Mr Brown not to abandon the child care vouchers.

The Prime Minister made the original announcement during Labour's conference in September, when he vowed to spend the money on ten hours of free nursery education for two-year-olds instead.

Almost 40 Labour MPs have also signed an early day motion denouncing the move.

Caroline Flint, the former Europe minister who quit the government claiming Mr Brown did not understand women, told a Sunday newspaper: "This sends the wrong message to working mums. I am very worried about us taking a benefit away from a group of working women."

Number 10 has argued that the childcare vouchers are poorly targeted and that many on high incomes take them up.

However, the majority of those who take up the subsidised nursery, nanny and childminder care through their employers are on low and middle incomes.

In response to the petition, Mr Brown said on his website: "We are not actually abolishing the childcare vouchers. What will be happening is the Treasury will be phasing out the tax and national insurance relief employees receive for childcare vouchers, but companies will still be able to offer childcare vouchers to the people they employ and in fact, we expect many of them will continue to provide support for childcare."