Withdrawal of tax relief for childcare vouchers

The Prime Minister’s speech at this year’s Labour Party conference announced free childcare for up to 250,000 two year-olds. This scheme will be funded by the reform of the existing voucher scheme. Full details are scheduled to be announced in the Pre-Budget Report later this autumn, however the Department For Children, Families and Schools has confirmed that from April 2011 employees who join existing employer supported childcare voucher schemes will no longer be entitled to the existing tax relief.