Low-income families could face cuts of almost 30 per cent to their childcare subsidies under the government's welfare reforms, a leading charity has warned.
At present, low-income parents can receive up to 80 per cent of their childcare costs through the childcare element of working tax credit. Families in receipt of housing or council tax benefit can get as much as 97 per cent of their childcare costs covered.
But charity Family Action has found that the welfare reforms, laid before parliament last week, risk reducing this amount to 70 per cent at best, undermining efforts to get parents back into work.
Sam Royston, policy officer at Family Action, said the government must clarify urgently its policy on childcare subsidies.
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