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Working Parents tax break: Families receive a £2000 tax break per child

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Across the UK, families have been calling out for more help for parents that are working and struggling to pay for child care and every day living expenses, and it looks like a working parents tax break is to be introduced in the Budget.

Working Parents Tax break to be introduced

The controversial new plans will mean that working parents will be entitled to a tax break of £2000 per child. This would mean that a family with two children under 12 where both parents work, would be up to £4000 a year better off. The figures to be announced are higher than expected and are set to be introduced much quicker than anticipated, with the scheme to be put in place from next Autumn.

Who will this affect?

This working parents tax break is designed to offer more support for all working parents that earn under £150,000 each; a section of society that have argued are often forgotten about, as they’re unable to claim any benefits, yet are still feeling the pinch of stagnant wages, increased cost of living and increasingly high childcare costs with little or no support from the Government.working parents tax break

The scheme will replace the current childcare voucher system and will enable parents to pay in money towards childcare, with the Government adding 20p to every 80p provided by parents. This also means that those who were previously unable to claim childcare vouchers, either because their employer did not offer them or they’re self-employed, will be able to take advantage of the savings.

Both parents have to be working to claim, however, the government have lowered the earning threshold so that a parent earning as little as £50 a week is still eligible.

Concerns over the new plans

Despite this being a welcome move for working parents, not everyone is supportive as the new changes will offer no support for families with a single bread winner or for stay at home mums. Those against the plans claim it’s deliberately discriminating against single earner families in order to force mums back to work. Mothers At Home Matter spokesperson, Laura Perrins said: “It’s a disgrace that taxpayers’ money will be used to contribute to the childcare bill of families earning up to £300,000. The old Etonians need to take a trip to reality street”.

Tim Laughton, former children’s minister also agrees claiming that ‘the state is disproportionately geared up to pushing parents into being working parents’

Despite the criticism, the plans are set to be introduced as according to a leaked Treasury document, working mums ‘are in greater need of support than those who stay at home to care for their children.’

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About Rebecca Robinson

About Rebecca Robinson

After spending the last 8 years juggling life as a mum of two, wife and working full time as a Project Manager for a global telecommunications company, Rebecca Robinson made the decision to follow her love of writing and took the plunge; turning her passion into a full time career. Since becoming a full time writer, Rebecca has worked with various media and copy-writing companies and with the ability to make any topic relevant and interesting to the reader, now contributes to The Working Parent on articles ranging from credit cards to teenage relationships. Ever the optimist, Rebecca's dreams for the future include a house in the country filled with children, dogs and horses in the field!

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