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Tories pledge to scrap £100,000 childcare 'cliff edge'

Tories pledge to scrap £100,000 childcare 'cliff edge'

Summary

The Conservative Party in England plans to remove the £100,000 income limit that currently stops some parents from getting government help with childcare costs. This change aims to encourage more people to work without losing childcare support as their income rises.

Key Facts

  • Parents in England lose childcare support if either earns more than £100,000 a year.
  • Childcare support includes 30 free hours weekly and a tax-free scheme that adds £2 for every £8 parents pay in.
  • Conservatives want to remove this £100,000 threshold so no one loses childcare help due to higher income.
  • The policy is expected to cost £700 million and will be paid for by cutting jobs in certain government-related bodies.
  • Conservatives say the change will motivate more people to work and support families, boosting the economy.
  • The threshold is criticized because it can make parents worse off after a pay raise.
  • The party’s leader, Kemi Badenoch, said people shouldn’t be punished for earning more money.
  • The announcement was made before the Conservative Party’s annual conference in Birmingham.
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