UK Budget Implications for Early Childhood Education

Just thought I’d highlight a few of the key points relating to early childhood education announced in yesterday’s budget. Given the general atmosphere of spending cuts within the public sector it is perhaps unsurprising that the budget delivered very little positive news for early years practitioners and parents of young children.   

Employer supported childcare – tax relief restrictions

From April 2011, higher rate and additional rate tax payers will face a reduction in the amount that they are able to claim as part of an employer supported childcare scheme. This will be set at £28 and £22 respectively, however it will remain at £55 for basic rate taxpayers.  The government will also amend the qualifying condition for availability of employer-supported childcare schemes in respect of employees with earnings at or near the national minimum wage.

Child Poverty and social mobility

It was announced in the budget that the current reforms to the tax and welfare systems could reduce child poverty by as much as 50,000 over the next two years. This would obviously be a step in the right direction however it is far from certain that the reality will match up to the estimate.

Finally, it might be worth noting for those of you involved in fundraising whether for early education projects or any other good cause, that there will be a slight relaxation of the gift aid rules which should broaden the range of donations that are covered by the scheme.

I hope this little overview has been helpful.
Peter