CYP Now first reported the Social Market Foundation's (SMF) idea for childcare loans last August. Publishing its finalised proposals for a "national childcare contribution scheme" today (8 February) in the report A Better Beginning, the foundation says such a scheme would help parents overcome the financial burden of childcare at a relatively low cost to government.
Under the plans, all working parents with a child under school age would be eligible for the loan scheme, whereby the government would offer a voucher that could be used to pay for formal childcare.
The main earner in the family would start paying back the amount through the tax system at six per cent of their gross income above the income tax personal allowance, with payments stopping once the amount had been repaid or after 20 years. An interest rate of three per cent above inflation would be applied to the repayments.
Register Now to Continue Reading
Thank you for visiting Children & Young People Now and making use of our archive of more than 60,000 expert features, topics hubs, case studies and policy updates. Why not register today and enjoy the following great benefits:
What's Included
-
Free access to 4 subscriber-only articles per month
-
Email newsletter providing advice and guidance across the sector
Already have an account? Sign in here
