The measures will help parents to go out to work if they want to and provide

more security for their families, while directing extra

support to those children from disadvantaged

backgrounds.

The Package IncludesThe government will provide 20% support on childcare costs up to £10,000 per year for each child via a new simple online system. The limit had previously been set at £6,000. This now means support of up to £2,000 per child per year.

Tax-Free Childcare will be open to more than twice as many families as currently use Employer Supported Childcare (ESC) vouchers and, unlike ESC, will not depend on employers offering it. In addition to giving support to the self-employed, the scheme has been adjusted to ensure those working part-time, earning £50 per week and above, those on maternity, paternity or adoption leave and those starting their own business who may not meet the minimum earning requirement will be included, giving them government help with childcare costs for the first time.

More help for Disadvantaged 3 and 4 Year Olds

A new Early Years Pupil Premium will be introduced to help ensure children get the best possible start in life.

£50 million will be invested in 2015 to 2016 giving early years providers more support to help those from the most disadvantaged backgrounds.

This will help providers employ more highly qualified staff, for example, or to increase access to services such as speech and language specialists.

85% of Childcare Costs to be Met Under Universal Credit

To help more families move off of benefits and into employment, the government intends to increase the rate of childcare support in Universal Credit from 70% to 85%, so that 500,000 households get more out of the money they earn, making sure work pays.

Further Information

Tax-Free Childcare:

The scheme will open in autumn 2015 and be available to around 1.9 million working families with children under 12 by the end of its first year of operation. The government's consultation had originally proposed that eligibility for the scheme would build up more gradually and that it would take 7 years for all children under 12 to be eligible to receive support.

Access infographics explaining how the new system will work - and how parents' views fed into the design of the

scheme

Early Years Pupil PremiumThe government has already prioritised investing in early education and childcare, in particular for the most disadvantaged families, by increasing the free entitlement from 12.5 to 15 hours a week of free early education and childcare for all 3 and 4 year olds; and extending this from September to the most disadvantaged 40% of 2 year olds.

The Early Years Pupil Premium will provide nurseries, schools and other providers of government funded early education with extra money for disadvantaged 3 and 4 year olds.

The Early Years Pupil Premium will be £50 million in 2015 to 2016 and the Department for Education will consult on the details of the programme shortly.

Universal CreditHelping families move off benefits and into work is an important priority for the government and is central to Universal Credit, to help ensure it always pays to work.

Last year we consulted on a proposal to increase the rate of childcare support under Universal Credit for taxpayers. Today, the government announces that all families in Universal Credit will be able to receive 85% support on childcare costs, up from 70%.

In line with the principles of the welfare cap, offsetting savings to fund this expansion will be found from within the Universal Credit programme. Further details will be set out at Autumn Statement.

To know more about Tax Free Childcare Account visit:

http://taxfreechildcareaccount.co.uk/

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