PARLIAMENTARY WRITTEN QUESTION
Children: Day Care (23 February 2015)

To ask the Secretary of State for Work and Pensions, if he will provide guidance to families with variable incomes on how best to choose between universal credit and the tax-free childcare scheme; and if he will make a statement.

Asked by:
Alison McGovern (Labour)

Whilst parents can only receive support from either Universal Credit or Tax-Free Childcare at any time, where families are eligible for both they will have the freedom to choose the scheme which best meets their needs, and will be able to move freely between schemes when they experience a relevant change in circumstances.

Draft guidance for parents on Tax-Free Childcare has already been published online for consultation by HMRC. There will also be an easy-to-use online calculator for parents choosing between Universal Credit and Tax-Free Childcare. Parents will be able to enter details about their personal circumstances to quickly see what support they may be entitled to and how much they may get.

The DWP continues to work closely with HMRC to ensure the two schemes complement each other effectively, and that parents will have the guidance they need in order to make an informed decision on which scheme will provide the best support for them.

Answered by:
Steve Webb (Liberal Democrat)
25 February 2015