A revolt is growing amidst plans to cut tax breaks for childcare vouchers. MPs are requesting a rethink of proposed plans to withdraw the tax relief for childcare vouchers, as announced by the Prime Minister at last month's Labour Party Conference.
A group of senior MPs called for a rethink of the plan in a letter to the PM. Those opposed to the action, including nine former cabinet ministers, suggested the change could jeopardise efforts to tackle the recession.
This is backed up with a petition signed by over 60,000 people so far on the Downing Street website, demanding that the action is reversed.These plans will affect over 340,000 working parents in the UK, who can save up to £1,195 each year towards childcare costs. The changes are due to start in April 2011, when the tax breaks will begin to be wound down.
The average cost of childcare is now around £8,500 a year, so the tax break cuts could add an extra 2020">found here). You can then sign this petition against the changes.
Do you use childcare vouchers? What would be the financial impact on you if current plans go ahead?