Changes to childcare in 2017

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You may already be aware that the government have recently announced a number of proposed changes to childcare in 2017.

The main change is the introduction of tax-free childcare, which will replace the existing employer-supported scheme. This means that for the first time a childcare scheme is going to be available to self-employed parents. It will be open to more than twice as many parents as the employer-supported scheme. Some parents will be better off in the new scheme and others may lose out slightly, depending on individual circumstances.

It will be rolled out gradually to families, with parents of the youngest children able to apply first, from early 2017. All eligible parents will be able to join the scheme by the end of 2017. Each family will have their own tax-free childcare account which they will use to pay for childcare.

Anyone can pay into the account (including grandparents, other family members or employers) and for every 80p paid in the government will pay 20p, up to a maximum of £2,000 per year per child.

The existing scheme will remain open to new entrants until April 2018 and continue for those already in the scheme (as long as their employer continues to offer the scheme). Parents in the existing scheme do not need to switch to the tax free scheme unless they wish to, or if their eligibility ceases.

Gov.uk have produced a useful guide with more information the changes to childcare in 2017, in particular on tax-free childcare, click here for more information.

For more information and advice on the changes to childcare in 2017, contact the Service Desk on 0345 222 1551 • Option 6 or email hrservicedesk@schoolbusinessservices.co.uk


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