Cameron ‘won’t be taking up’ new childcare tax break

David Cameron will not be taking advantage of a tax break for childcare, worth up to £2,000 (€2,382) per child each year.

The scheme, unveiled on the eve of today’s budget and due to come into effect in autumn 2015, will help around 1.9m families with children aged under 12 where both parents work, at a cost of around £750m.

Mr Cameron said the policy would be “a huge help to millions of families across Britain”, allowing parents to make the choice to work longer hours.

But it has come under fire from some quarters for excluding couples where one parent does not work and being offered to high- earning households with a joint income of as much as £300,000.

Visiting a nursery with Deputy prime minister Nick Clegg to launch the scheme, Mr Cameron said he “won’t be taking it up” for his children Nancy, Elwen, and Florence.

But Downing Street brushed off suggestions he was seeking to send a signal to wealthy parents that they should decline the cash. His spokesman said: “This is about giving families support for the choices they make. We are not here to give financial advice.”

Labour said support for children and families had been cut by £15bn since the coalition came to office in 2010 and pointed out that the policy will help far fewer families than the 2.5m predicted when it was first outlined last year.

Describing the package as “too little too late”, the party’s spokeswoman for children, Lucy Powell said: “Of course, any childcare support is welcome but this government has done nothing in this parliament to help parents experiencing a cost-of-living crisis.”

The system will allow parents to escape paying basic rate income tax of 20% on childcare costs of up to £10,000 — up from the proposed £6,000.