§ Mr. BoswellTo ask the Chancellor of the Exchequer how many current recipients of childcare tax credit he estimates will lose out from April on account of the rate that such credit will operate for a minimum period of four weeks. [98673]
§ Dawn PrimaroloWhen it is introduced in April, the working tax credit will include a child care element which provides more flexible support for the costs of eligible child care.
In response to concerns raised by parents paying child care costs weekly, who may have short increases of child care costs during the school holidays, we are bringing forward regulations making a minor change to the system to allow parents to take account of changes in costs lasting less than four weeks. This will allow parents with fluctuating costs to have their tax credit based on their average child care costs, including any short-term fluctuations. The Inland Revenue will issue clear guidance for parents and child care providers on how the system will work from April.