The usual leaks have begun to appear ahead of the Budget speech on Wednesday.
One big measurement appears to be income tax relief on childcare costs.
The 20% tax relief, to be introduced from 2015, could be worth up to £1,200 a year for working parents.
Such a scheme would allow parents to claim back 20% of typical childcare costs, for either a nanny or nursery fees, of up to £6,000 – what the government believes to be the average annual cost of such childcare.
It would cost around £1.4bn to provide such a tax relief and it is not clear at this stage whether it would replace or supplement existing childcare vouchers; probably the former.
Reports suggest the childcare tax relief will only be available where both parents are working and parents earning up to £150,000 a year would be eligible.
Whilst this proposed measure is a boost to the finances of working parents, it is a shame it will take another two years to introduce.
Photo credit: Flickr/Philip Fibiger
