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Data reveals government underspend of £2.3bn on tax-free childcare

2 mins read Early Years
New data reveals a government underspend of £2.37bn on tax-free childcare since the initiative was launched in 2017.
The tax-free childcare scheme was launched in 2017. Picture: Adobe Stock
The tax-free childcare scheme was launched in 2017. Picture: Adobe Stock

The figures were revealed in answer to a parliamentary question from Tulip Siddiq, Labour’s shadow early years and families minister.

Siddiq asked: “what the (a) forecast and (b) actual expenditure was for the tax-free childcare scheme in the last five financial years to date.”

Simon Clarke, chief secretary to the Treasury, shared figures which show that the government has spent £2.37bn less on tax-free childcare than was originally budgeted for the scheme over the last five financial years.

Clarke’s response shows that between 2017/18 and 2020/21, the government spent around £630m on the scheme despite £3bn being initially being allocated for the same period.

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