The government is currently reconsidering plans to scrap tax relief on childcare vouchers to fund an expansion of free childcare places for two-year-olds, after concerns raised by campaigners.
The plans were originally announced in the Prime Minister's speech at the recent Labour Party conference. They were justified with claims that the tax relief is poorly targeted, with a third of the benefits of vouchers currently going to the 6 per cent of parents who pay tax at the higher rate.
But new analysis of the Family Resources Survey 2007-2008, which the campaign claims is the latest available data, shows that 92 per cent voucher users are basic rate taxpayers.
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