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Children: Day Care

Treasury written question – answered on 9th September 2019.

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Photo of Emma Little Pengelly Emma Little Pengelly Shadow Spokesperson (Justice), Shadow DUP Spokesperson (Equality), Shadow DUP Spokesperson (International Trade)

To ask the Chancellor of the Exchequer, with reference to the Tax-Free Childcare statistics, published March 2019, for what reasons 60 per cent of open accounts are not being used.

Photo of Rishi Sunak Rishi Sunak The Chief Secretary to the Treasury

Due to the way Tax-Free Childcare is linked to 30 hours free childcare, a large number of Tax-Free Childcare accounts for 3 and 4 years olds are opened but not used to pay a childcare provider. This happens because a child who has a 30 hours account opened, will automatically have a Tax-Free Childcare account opened as well, if their parents are eligible. The reason for this feature of the service is to ensure a smooth customer journey for families signing up for 30 hours free childcare, so that they have a Tax-Free Childcare account ready for use when their child is no longer eligible for 30 hours free childcare.

Additionally, when a Tax-Free Childcare account is opened for a child, of any age, accounts will be opened for their siblings if their details are also entered during the application.

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