Clamping down on the misuse of childcare tax credits

Sajid Javid, Minister in HM Treasury, confirmed in a written reply to a York Outer MP Julian Sturdy, dated 13 November 2012, that the government had no intention of paying childcare providers directly the childcare element of the Working Tax Credit, saying: “This support is intended to facilitate parental employment and, for this reason, is most effective when paid directly to parents rather than to childcare providers. Parents are afforded more of the choice and flexibility they need in order to work.”

I would be interested to see what evidence his department has that states paying parents and not providers ‘most effective’. This benefit is only paid if parents have children in registered childcare and is to help pay part of that cost but I know, like many other providers, that this sometimes is the last thing some parents use this for.