An estimated 2.5 million people will be eligible for the new tax free childcare scheme. To join the scheme parents must meet the following criteria
All parents are working (either employed or self-employed)
All parents have an income of less than £150,000 pa
The child is under 5 years old (under 16 if the child is disabled)
Parents working part time are eligible as long as they are working more than 16 hours a week.
The childcare scheme will be run online and families will be required to open an online ‘voucher account’. It is proposed that the parent will pay the childcare provider their share of the costs. The provider will then check the parents’ details with the government (to ensure they are eligible) and the government will then pay the childcare provider the state’s share of the cost.