CPAG letter to Chancellor: use Autumn Statement to improve childcare support

Published on: 
03 December 2013

Our Chief Executive Alison Garnham has written to the Chancellor of the Exchequer asking him to increase investment in support for childcare costs through universal credit in his Autumn Statement. 

The Chancellor will make the annual statement to parliament on Thursday 5 December 2013 and is expected to focus on measures to ease the squeeze on living standards families are facing.

Under current plans, parents with the highest earnings who qualify for the new credit, which is now being phased in to replace tax credits, will be able to claim back up to 85% of their childcare costs. However, lower earning parents will only be able to claim up to 70% of their childcare costs.

CPAG believe that resources should be prioritised for additional investment to ensure all working parents receiving the credit can claim back up to 85% of childcare costs. We have argued that this is essential if there are going to be sufficiently strong work incentives.

Further recommendations are made in the letter on tackling low pay by increasing the National Minimum Wage above inflation - as was recommended by the government's advisory commission on child poverty - and on addressing the decline in living standards for families by increasing support through child benefit.