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OPINION: Debate - Should childcare tax credits be regionally weighted?

1 min read
Camden council says the higher cost of childcare provision in London means many parents can't afford it and are being forced to miss out on training and jobs, so it wants the Government to raise the level of the working tax credit.

YES - Maggie Walker, head of business development, 4Children

While regional weighting would be a difficult thing to do because of equity, it's something that needs to happen if we are to ensure everyone has access to high-quality, affordable childcare. The tax credits need to compensate for cost differences in childcare, especially in London and other major cities, where key workers are particularly vulnerable. Rural areas also could benefit - especially where the cost of facilities like transport can put people off developing childcare settings.

NO - Dame Sally Powell, deputy chair, Association of London Government

We do not support regional weighting per se but we would urge that actual costs are taken into account to ensure that there is the same level of benefit and the same incentive to work across all areas. In areas where there are higher costs, that would mean paying more childcare tax credit than in those with low costs. It's not about regionalisation, it's about having the flexibility to deal with the reality of actual costs and so create a fairer system.

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