“4Children is pleased that the Treasury is now proposing to look further at the Tax Credit and work with relevant professionals and organisations to explore alternatives. Whilst there has been considerable work carried out by Government to help improve parental confidence and promote take up, we know that a more fundamental review will be needed to really reach some of those parents who need help the most. 4Children has long campaigned for this sort of review which would help tackle some of the problems parents on variable incomes face, and the concerns many parents have about being asked to pay back help at the end of the year.

"We look forward to working with the Treasury to help shape these policies and will ensure that the experiences of families and providers are heard so that any system works for them and will overcome barriers which alienate and deter many parents and families from accessing support they need.

“We are particularly pleased that the review will also look at the issue of who the childcare element of the tax credit should be paid to. 4Children has long advocated that the credit should be paid directly to providers on the parents' behalf. This would reduce financial burden on parents and would ensure that the full impact of the credit was felt by the sector – so aiding sustainability. This system change was introduced in New Zealand several years ago with great success.”

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4Children Press Office

Julie Watkins: 020 7522 6928 / 07917 870 641
julie.watkins@4Children.org.uk

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