Children: Day Care

Treasury written question – answered on 9th July 2014.

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Photo of Lucy Powell Lucy Powell Shadow Minister (Education)

To ask the Chancellor of the Exchequer what steps he plans to take to ensure that parents use their tax-free childcare accounts to pay for childcare; and what additional costs such checks will place on HM Revenue and Customs.

Photo of Nicky Morgan Nicky Morgan Minister for Women, The Financial Secretary to the Treasury

Parents’ payments from their Tax-Free Childcare accounts will only go to registered childcare providers. HMRC will investigate in the exceptional circumstances where it suspects the payments were not used for childcare. The Childcare Payments Bill sets out HMRC’s proposed compliance powers.

The administration costs of the scheme will be settled once the scheme’s design has been finalised.

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