More than 65,000 families in the North West used Tax Free Childcare in the last year

NEW Tax Free Childcare statistics from HM Revenue and Customs (HMRC) have revealed that 65,620 families in the North West received up to £2,000 towards the cost of their childcare during the 2021 to 2022 tax year, up from 47,750 in the previous year.

Tax Free Childcare provides thousands of eligible working families with vital financial support towards the cost of their childcare with the Government paying £240 million annually in top up payments to families using the scheme.

For thousands of families who use Tax Free Childcare, the money they save each month on their childcare costs is money that goes back into their pockets.

For every £8 paid into a Tax Free Childcare online account, families will automatically receive an additional £2 in Government top up, and it is available for children aged up to 11, or 17 if the child has a disability.

Families receive up to £500 every 3 months, per child, or £1,000 if their child is disabled, helping towards the cost of:- Before and After School clubs, childminders and Nurseries, holiday clubs and other approved childcare schemes. But hundreds of thousands of families could be missing out, with recent research published by HMRC estimating that about 1.3 million families could be eligible for this Government support. Parents and carers are being urged to check their eligibility and register for Tax Free Childcare via https://Gov.UK.

Across the UK, 512,415 families used Tax Free Childcare in the 2021 to 2022 tax year, compared to 374,135 in the 2020 to 2021 tax year.

Myrtle Lloyd, HMRC's Director General for Customer Services, said:- "Tax Free Childcare can make a big difference to families, helping with the bills for things like Nurseries, childminders and after School clubs. It's easy to register - search 'Tax Free Childcare' on Gov.UK."

Helen Whately, HM Treasury's Exchequer Secretary to the Treasury, said:- "It's fantastic that more parents are taking up Tax Free Childcare. This support provides a helping hand with childcare costs for working families. With over 1 million families eligible, I want to encourage parents to take advantage of Tax Free Childcare and keep the extra pounds in their pocket."

The latest monthly comparisons for the North West also show that a record number of families were using their Tax Free Childcare account in March 2022 - 50,095 families compared to 36,795 in March 2021 - an increase of 13,300 families.

The scheme offers a 20% Government funded top up on money deposited into Tax Free Childcare accounts, which can be used to pay their childcare provider. Accounts can be opened at any time of the year and can be used straight away, and money can be deposited at any time and used when needed.

For example, if parents and carers have School aged children and use holiday clubs during School holidays, they could deposit money into their accounts throughout the year. This means they could spread the cost of childcare while also benefitting from the 20% Government top up. Any unused money that is deposited can be simply withdrawn at any time.

Tax Free Childcare is also available for pre-School aged children attending Nurseries, childminders, or other childcare providers. Families with younger children will often have higher childcare costs than families with older children, so the Tax Free savings can really make a difference.

Childcare providers can also sign up for a childcare provider account via Gov.UK to receive payments from parents and carers via the scheme.

Inadequate Funding Undermines Social Care Reforms

CARE England, the largest and most diverse representative body for independent providers of adult social care, has expressed concern at the findings of the County Council Network and Newton Report:- 'Preparing for Reform.'

Professor Martin Green OBE, Chief Executive of Care England, says:- "Whilst we welcome Government ambitions to reform the care sector, we must be insistent that the reforms be financially practicable. Today's report demonstrates that the Government has significantly underestimated the funding required by a phenomenal amount. The consequence of which is that the sector will face further additional financial pressures, on an already overburdened sector. These reforms will be the straw which breaks the camel's back without urgent central intervention and funding."

The key findings of the:- 'Preparing for Reform' report includes:-

► The cost of the care reforms, including:- the cap and means-test for over 65s, new 'Fair Cost of Care' and administrative overheads in England will cost a minimum of £25.5bn over the next decade, £10bn more than the Government's own assessment.

► There is a significant regional variation in the costs of implementing the reforms, with Councils in county and rural areas being disproportionately impacted.

► An additional 4,300 social work staff will be required to carry out the additional Care Act assessments, reviews, and case management, on top of a current vacancy rate of 1,782, and an additional 700 financial assessment officers will be necessary.

► Councils in county and rural areas could face the biggest financial and workforce challenges.

► To properly fund these reforms, the Government needs to spend 50% of the Health and Social Care Levy by 2032 on these proposals alone, irrespective of other significant social care pressures in the system.

Martin Green continues:- "Care England continues to work collaboratively with local and national stakeholders to ensure the reform proposals land as well as possible. However, the outcome of this report demonstrates that Care England's argument that the current funds allocated to social care reform are grossly inadequate is accurate and reflective of the reality of the current situation the care sector is in. The Government must address these findings and commit to providing additional financial resources to see these reforms to fruition to secure a sustainable and financially viable care sector for the future."