Thousands lose out on nursery costs from tax credit cuts

Figures compiled by the Daycare Trust for the annual Child Care Costs Survey, 2012, show that 44,000 fewer families will be getting help with childcare costs following the April tax credit cut. The survey also finds that nursery costs will rise by nearly 6 per cent, and that there are major gaps in childcare despite legal duties on local authorities. By cutting the maximum level of support available through the childcare element of Working Tax Credit from 80 per cent of costs to 70 per cent, the average claim has fallen by over £10 per week, costing the low-income working families that receive it more than £500 per year.

The survey, which is sponsored by Computershare Voucher Services Ltd, finds that average childcare costs now exceed £100 for a part-time place (25 hours) in many parts of Britain with the average yearly expenditure for a child under two standing at £5,103.

A summary of the report, Childcare Costs Survey 2012, can be found on the Daycare Trust website, where the full report can be purchased.

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