Budget Planning

Child tax relief reforms 'could hit parents hard'

02-10-09, 03:24 in Budget Planning
Child tax relief reforms 'could hit parents hard'
New proposals to reform tax relief for working parents could create financial problems for many mums and dads, it has been claimed.

More than 450,000 parents are expected to lose out under the changes, which will mean the removal of childcare voucher tax breaks currently available, according to Parentsoutload.com.

This could even see some parents' bad credit ratings worsen as they struggle to afford childcare while they are at work.

A representative of the pressure group in the UK Margaret Morrissey explained that the newly proposed system, hinted at by prime minister Gordon Brown in his Labour Party conference speech, will cost all parents more money.

She explained: "How can this be a positive way forward? The message is, if you have studied hard, worked hard and done well and are now trying to raise a young family and still have a career, which benefits us all, [then you will get less help].

"Do we want to push families in[to] another brain drain scenario?"

In a statement, a spokesperson for the government explained that resources needed to be redirected to where they are most needed in the current climate, which requires tough choices.
ADNFCR-2660-ID-19390831-ADNFCR

Apply now for a Vanquis Visa Card

We’ve already helped over 800,000 people like you feel in control

  • Choose your card design: Blueberry, Lime or Cherry
  • 24/7 Fraud Watch
  • A UK Customer Service Centre
Find out more Apply now
typical 39.9% APR variable based on a typical credit limit of £250
Apply now for your Blueberry, Cherry or Lime Vanquis Credit Card