8 December 2004
Families get tax break to help pay for nannies
As of April 2005 parents will be able to get financial support to help pay for nannies, Children's Minister Margaret Hodge announced at the annual Sure Start Conference on Wednesday December 8.
Under the Childcare Approval Scheme families with a combined family income below £59,000 will be eligible for working tax credit support for childcare in their own home. Parents on the lowest incomes will receive the most with support tapering off towards the higher end of the scale. The financial support will cover 70% of childcare costs of up to £175 per week for parents with one child to £300 for families with two or more children. This will increase in April 2006 to cover 80% of childcare costs.
Families who earn above the threshold of £59,000 may also receive some financial support by using employer-supported childcare vouchers, which will exempt parents from paying tax and NI on the first £50 per week they spend on childcare.
The approvals scheme is entirely voluntary but in order for parents to benefit the nanny needs to be approved and provide evidence that she:
- Has relevant qualifications or has attended an approved induction course in childcare
- Has a valid first aid certificate suitable to the care of babies and children
- Has an enhanced CRB disclosure
- Is aged 18 or over
Nestor Primecare Service Ltd has been appointed as the approvals body. They will start accepting applications from January 4th; the approval will come into effect on April 6th and will last for 12 months. All applications received between January 4th and April 6th will have a common starting date of April 6th. An approval fee of £96 will be payable to cover administration costs. The fee will then be payable on an annual basis if nanny wants to be reapproved. Nestor Primecare will provide a list of approved childcare induction course providers and will also help applicants with first aid certificates and CRB disclosures.
For more information on the Childcare Approval Scheme please visit the Sure Start website.