Understand
Conservatives pledge to scrap £100,000 childcare cliff edge
Overview
The Conservative Party has announced plans to abolish the £100,000 earnings threshold that currently prevents parents in England from receiving government-funded or tax-free childcare support. Party leader Kemi Badenoch stated that people should not be punished for working harder, while shadow chancellor Andrew Griffith described the policy as the first step towards lower, simpler, and fairer taxes. The estimated £700 million cost of the policy would be funded by reducing the number of public servants in executive non-departmental public bodies, saving £1.6bn by 2029-30.
Key points
- The Conservatives promise to remove the £100,000 income threshold for government-funded and tax-free childcare in England.
- Under current rules, families lose childcare support if any parent earns over £100,000 a year.
- Conservative leader Kemi Badenoch stated the policy ensures people are not punished for working harder and helps grow the economy.
- The policy is estimated to cost £700 million.
- The changes would be funded by cutting public sector staff in executive non-departmental public bodies, saving £1.6bn by 2029-30.