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Working parents to receive more help with childcare

18 Mar 2014

Ahead of tomorrow’s Budget speech, it has been revealed that working families could receive a childcare allowance of up to £2000 per child.

From autumn 2015, the scheme will be available to an estimated 1.9 million households. The maximum allowance will be £800 more than originally outlined in an effort to help ease the financial concerns of families where both parents work.

The annual payment – to be available for families earning under £150,000 – is due much earlier than originally planned. Working parents with children who are under 12 within a year of the scheme’s start will qualify for the allowance.

The Treasury estimates the cost of the scheme will be £750 million.

According to the Family and Childcare Trust, the average nursery cost for under-twos rose to £106.38 per 25 hour week last year. A full time place costs approximately £11,000 per year.