Policy News Journal - 2014-15

from Autumn 2015, at which time Employer Supported Childcare schemes will be closed to new entrants.

Since then we have seen no less than two consultation papers issued, one on the design and operation of TFC and one that sought views on childcare account provision. Both consultation papers have resulted in you giving up your valuable time to respond to the Policy team surveys and we thank you for your views. One consistent request that members and the CIPP Policy team have made is for early sight of guidance, to enable the employer who currently operates an employer supported childcare scheme, (and who has no mandatory role with TFC) to look ahead and decide what action they need to take, if any, as the introduction of TFC approaches. The provision of childcare nurseries is not impacted by TFC. However Childcare voucher schemes and directly contracted childcare schemes will be closed to new entrants. Parents who wish to open a tax free childcare account will receive a government top up, to a maximum of £2,000 per year (subject to contribution amounts made into the account). We are grateful to see that draft guidance has been issued, so your views were heard. Thank you for your views and thank you to the team involved in this project for hearing and responding to those requests. It has to be said that the Childcare Payments Bill is in the Committee stage and therefore may yet be subject to change and there is legal challenge ongoing as to whether NS&I, in partnership with HMRC, will be the account provider or the only account provider option available and so draft guidance inevitably will change. However, and as you might expect, your views, once again are being sought on the draft guidance . If you would like to include your views within the CIPP Policy Team submission, then please contact Samantha Mann, Senior Policy & Research Officer at policy or if you prefer you can submit your comments directly to HMRC . Thank you for your ongoing responses both with surveys and with the provision of anecdotal views and experiences when we meet at National forums, the APPC and other events. Your views are valued and also, it would seem with draft guidance being published one year ahead of going live, listened to and acted upon.

Tax-free childcare impact assessment

21 November 2014

The government have issued an impact assessment on the new tax free childcare scheme, which they believe is a fairer scheme targeted at working families.

The publication argues that “the current scheme to support parents with the cost of childcare, Employer Supported Childcare (ESC), is neither effective nor fair, as many working families are unable to access support. Survey data in the report suggest that many mothers would move into or increase their hours in work if they could arrange reliable, affordable, convenient, good quality childcare. The new scheme is targeted at working families and is a wider, fairer and better way to help with the costs of childcare.”

Tax-free childcare - Childcare Payments (Eligibility) Regulations and draft Childcare Payments Regulations 2015

11 February 2015

CIPP Policy News Journal

08/04/2015, Page 173 of 521

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