Child Care Vouchers
Treasury
Written answers and statements, 4 November 2009
Jessica Morden (Newport East, Labour)
To ask the Chancellor of the Exchequer what estimate he has made of the proportion of parents receiving childcare vouchers from employers who pay income tax at the basic rate.
Stephen Timms (Financial Secretary, HM Treasury; East Ham, Labour)
Published research, commissioned by HM Revenue and Customs in 2006, by the National Centre for Social Research (NatCen) found that 70 per cent. of the recipients of child care vouchers were basic rate taxpayers in late 2005. The report is available at:
http://www.hmrc.gov.uk/research/research-report23.htm
30 per cent. of child care voucher recipients were higher rate taxpayers, who account for 6 per cent. of parents. This group also receive a proportionally higher amount of the relief that goes to parents through Employer Supported Childcare due to their higher marginal tax rates.