The extension of tax-free childcare to greater numbers of self-employed women.

2.    Budget 2013 extended tax-free childcare to the self-employed for the first time; however, the offer excluded the majority of self-employed women who either work part-time or whose earnings are below the tax threshold. Budget 2014 has been adjusted to reduce that anomaly. According to HM Treasury:  “The scheme has been adjusted to ensure those working part-time, earning £50 per week and above, those on maternity, paternity or adoption leave and those starting their own business who may not meet the minimum earning requirement will be included, giving them government help with childcare costs for the first time.”

3.    Those measures should enable more self-employed women to access childcare subsidies for the first time. But what the chancellor is giving with one hand, he’s taking away with the other. The budget report states: “In line with the principles of the welfare cap, offsetting savings to fund this [£200 million] expansion will be found from within the Universal Credit programme.” Low-income self-employed families currently managing without formal childcare might find that their inclusion in this scheme leaves them worse off.

4.    While the WBG welcomes the extension of tax-free childcare to low-income self-employed families, we deplore the Chancellor’s decision to fund those measures through other benefit cuts to the same families.