Nannytax - campaigning on your behalf
Armed with nearly 1,000 signatures Nannytax went to No 10 Downing Street on August 13 to urge Government to listen to employers of nannies, nanny agencies and nannies across the UK and extend the types of childcare for which families can get financial support to include nannies.
One of Government’s declared policy aims is to enable mothers to return to work by supporting childcare provision and funding. The proposed new legislation could achieve this by making home childcare available to many more parents and act as the long overdue incentive for mothers to return to work following the birth of a child.
Many agree with Greg Shaw, a nanny employer who says:
“I feel very strongly that paying for the services of a nanny from taxed income – so that my wife can go out to work – and not being able to offset that cost against either my own or my wife's income is grossly unfair. In effect, it is double taxation.”
The proposal suggests a new service to be set up to approve childcarers that meet minimum criteria of training and suitability and for parents to check that childcarers are approved. The approval scheme is voluntary, so it's up to parents whether they want to use it or not. However, they will only get financial support if their childcarer has been approved.
The social basis for nanny employment has widened considerably in recent years from its traditional upper-middle class origins. For many of today’s working parents, nannies are simply the only form of childcare flexible enough to accommodate their own working hours or career requirements. Marian Cleary a mother of two says:
“I am a secondary school teacher and my husband works for social services. Now that our eldest is starting school, we can no longer logistically maintain both our careers without feeling we are compromising our eldest child’s care – he would have to go to a childminder before and after school. We are being responsible parents in not wanting to farm our son out and commit him to a long day in school and cheaper pre-school/post-school care and seem to be being penalised for this. The government has invested in training my husband and me [but] one of us will need to stay home and take care of the children when we could be contributing more widely through our professions. I sincerely hope the situation is changed and the proposals are put into action.”
And Laura Cairns, a mother and former nanny employer says:
“It is in the Government’s interest to ensure that the funded places are taken by those who have more limited means. There is also a growing body of evidence that home caring is better for the child than a nursery in its early years. Extending this financial support would actively encourage the take up of this option for many families.”
If the DfES proposals were accepted, there would be several potential benefits for employers of nannies:
- Tax Credits – employers of nannies would become eligible for tax credits providing the combined family income does not exceed £58,000
- Childcare Vouchers – employers of nannies can ask their own employers to pay them part of their salary using childcare vouchers. The vouchers are exempt from a proportion of tax and national insurance
- The peace of mind of knowing that their nanny is approved
The closing date for the consultation was August 16 and an analysis of the responses is expected to be completed by the end of August. The DfES will then be presenting options to Ministers by the end of September. Please visit our website for regular updates.
