Conservatives Pledge to Scrap £100,000 Childcare Cap in England, Costing £700 Million
Updated
Updated · bbc.co.uk · Oct 3
Conservatives Pledge to Scrap £100,000 Childcare Cap in England, Costing £700 Million
3 articles · Updated · bbc.co.uk · Oct 3
Summary
The party said it would abolish the £100,000 per-parent earnings threshold that currently cuts off access to free and tax-free childcare in England.
Under the current rules, working parents get 30 free hours for children aged nine months to four years old only if neither parent earns above £100,000; the same cap also governs tax-free childcare worth up to £2,000 per child a year.
Kemi Badenoch called the threshold an "absurd cliff edge," arguing it can leave families worse off after large pay rises and discourages work, family formation and economic growth.
The Conservatives said the change would cost about £700 million and be funded from £1.6 billion of savings by cutting staff in executive non-departmental public bodies by 2029-30.
The pledge opens the party's Birmingham conference, where Badenoch and shadow chancellor Andrew Griffith are framing it as a first step toward lower, simpler and fairer taxes before the next election.