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Free childcare revisions unveiled, yet high earners continue to be left out

In the Spring 2023 Budget, the Government announced plans to revamp the existing free childcare scheme. However, these changes are likely to disappoint numerous higher earners who remain ineligible under the revised scheme.

Under the current childcare regulations, parents can claim up to 30 hours of free childcare for their children aged three to four.

Eligibility is contingent on factors such as your employment status (whether you’re employed or self-employed), the number of hours you work, and your income.

If you or your partner’s projected adjusted net income surpasses £100,000 in the current tax year, you won’t qualify for this scheme.

The upcoming changes, which will be introduced gradually over the next few years, will enable many UK families to access free childcare from an earlier age. However, the annual income cap of £100,000 will persist.

Schedule of changes:

These amendments will be favourably received by many UK adults who will now have the opportunity to rejoin the workforce at a much earlier stage.

Nonetheless, the benefits of these changes won’t be available to high earners due to the unchanged income restrictions.

Should you require further advice on the current childcare regulations or need more details about the impending changes, please don’t hesitate to contact us.


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