Increase tax-free childcare allowance in line with inflation

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Increase tax-free childcare allowance in line with inflation

Petition Details

The tax-free childcare scheme was set up in 2017 to help support working parents with the cost of childcare. Over the past 5 years, the cost of childcare around England has increased on average by 22%. This allowance should raise by at least £440PA, to ensure it continues being supportive to parents

Additional Information

In 2017 the average full time place for a child in nursery was around £222 per week, and around £943 per month (£11,322/12), with TFC parents would pay around £776 per month.

In 2022 the average full time place for a child is £263 per week, £1117 per month (£13,413/12), with TFC, this equals £951 per month.

By increasing TFC by 22% to £2,440 per year, this would allow a £203 relief for parents every month, bringing their monthly bill to an average of £914 per month.

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