The introduction of tax-free childcare will benefit working parents, says the NHBF

Tax free childcare

The NHBF has said that the government’s tax free childcare scheme, which will replace childcare vouchers, will encourage more hairdressers, barbers and therapists with children under the age of 12 to go out to work.

From 28 April 2017, eligible parents will be able to open an online account through the government’s website, GOV.UK, which they can then pay into to cover the cost of childcare with a registered provider. The government will make a 20% contribution to childcare, so for every £8 paid into the account, the government will add an extra £2 (up to £2,000 per child).

Gradually, the scheme will be rolled out over 2017, with parents of children aged under two invited to enter the scheme first. By the end of 2017, all eligible parents will be able to sign-up.

Statutory Maternity Pay

There has been lots of news on maternity pay in recent weeks after a study by the TradeUnions’ Congress (TUC) found that the UK ranks 22 out of 24 countries across the continent for its statutory maternity leave. However, most employed mothers in the UK are entitled to 52 weeks' maternity leave and 39 weeks' statutory maternity pay (SMP) or maternity allowance.

This April, the government introduced a rise in the weekly amount that mothers on maternity leave will receive. In the UK, most mothers can take up to 39 weeks of guaranteed pay at £140.98, (which rose from £139.58 on 2 April 2017), indicating that the UK’s maternity system is more generous than reports suggest.

The NHBF’s CEO, Hilary Hall comments: "For many hairdressers, barbers and therapists, returning to work after having children isn’t an option due to the hefty cost of childcare. The tax-free childcare scheme provides greater financial security for families both during maternity leave and for when they return to work. As a result, we hope parents will find it easier to return to the industry after having children.”