Hundreds back Barnardo's campaign against government childcare plans

The charity says government plans to lower the cost of childcare for working families by offering tax-free vouchers is unfair because 80 per cent of the £950m funding allocated to the scheme will go to higher earners.

While the government intends to pay 85 per cent of the childcare costs of families receiving benefits via Universal Credit – up from the current 70 per cent – parents or carers earning less than £10,000 each will not receive this extra support and will continue to receive the 70 per cent subsidy.

Of the total funding, £750m will provide 20 per cent of childcare costs for working families earning a combined salary of up to £300,000.

Neera Sharma, assistant director of research and policy at Barnardo’s, said a Freedom of Information request made by the charity had revealed it would cost £200m to ensure all parents on Universal Credit could get 85 per cent of their childcare subsidised.

The charity’s campaign calls for the government to reallocate this amount from the money earmarked for higher earners, to ensure that parents on the lowest incomes can afford childcare.

“At the moment it’s impossible for some of the UK’s poorest families to work their way out of poverty by taking on more hours, because of high childcare costs,” said Sharma.

“In fact at 24 hours a week – the crucial point when the government claims that families under the Universal Credit system will ‘strive’ their way out of poverty – Barnardo’s finds many of the poorest will earn nothing or even pay for the extra hours they work.

“We want the government to use this pot of money to make childcare affordable for the poorest families. This means using the funds to help every family that is on Universal Credit – regardless of whether they pay income tax or not.”

Neil Leitch, chief executive of the Pre-school Learning Alliance, backed the campaign.