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Tax credits: Call for childcare element to go directly toproviders

1 min read
Parents' tax credits should be cut to fund childcare services, delegates at a 4Children conference said last week.

Children's centre workers at the London conference said the childcareelement of tax credits should be paid to providers directly to helpimprove the viability of services.

Anne Longfield, 4Children's chief executive, said: "People are sayingthe childcare element doesn't always work and there is concern aboutparents who sign on with services but only attend two sessions. Thisaffects occupancy rates and service viability."

A similar move has already taken place in New Zealand and 4Children nowintends to examine the idea in greater detail.

The idea received support from the Family and Parenting Institute. LucyLloyd, the charity's director of communications, said: "Childcare isunaffordable for many parents under the current system, so we would beminded to support this change if it made the system morefavourable."

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