Make all households with income under £200,000 eligible for free childcare

Background

Under current UK policy, families where each parent earns just under £100,000 totalling nearly £200,000 are eligible for 30 hours of free childcare. In contrast, a single-income family earning just over £100,000 does not qualify for this benefit.

Additional details

We believe the current rule unfairly excludes single-income families earning just over £100,000, while dual-income households earning £198,000 still qualify. We think that changing and allowing all households with income under £200,000 to be eligible for free childcare would encourage people to work harder without facing a financial penalty for exceeding the cap. It could also ensure they continue contributing more tax to the economy while receiving the same support as higher-earning dual-income families.

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