Monday, 5 August 2013

Welfare: it is very difficult to understand - or even justify - childcare reforms

The headline: Osborne backs childcare cash for couples on up to £299,000

The commentary: The Chancellor denied it was unfair for very high earners to get government help of up to £1,200 tax-free per child for nursery places.

The group Mothers at Home Matter reportedly says that a single earner family on £36,000 pays £9,000 in tax while two earners with the same total income pay just £6,500.

My angle of the story is to ask the question: why does a family that earns more than £150,000 a year actually needs childcare support?  With such yearly income, what is the point of getting any welfare payments at all?

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