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Government cuts to childcare support will hit Leicester families hard

[03/01/2011 | No comment]

2,320 families in Leicester are set to lose £495 a year in support for childcare costs because of the Conservative-Liberal Democrat Government’s plans to reduce the childcare element of the Working Tax Credit.

The new figures, which have been released by the Resolution Foundation, show families in Leicester will be amongst the worst hit in the East Midlands. The average loss across the region – starting from April – is £421 a year, but families in Leicester will lose £495 a year because of the Government’s cuts.

Labour introduced the childcare element of Working Tax Credit to ensure that families on low to middle incomes would have access to high quality childcare for their children, helping parents to earn a living whilst knowing that their children were being properly looked after.

Under the current system working parents can claim support for up to 80% of the costs of childcare, but from April this figure will fall to 70%.

Many families are still unaware of the changes, despite the fact that they come into effect in a few months time.

My concern is that many parents in Leicester may not be able to carry on working because of these cuts. This isn’t good for families and children, and its not good for the economy. The Government should be helping families through these difficult times, not penalising them.

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