Amendment to Poverty

Proposer
OliverJackson1
State

Accepted

Vote Score

2

Age

2852 days


OliverJackson1

@OliverJackson1 - almost 8 years ago

New section called 'burden of childcare' focusing on the long-term goal of free provision.

Also a note of opposition against the proposed amendment to the current Childcare Voucher scheme and a statement on the desire to increase the savable limit to £500. In reality (although, not sure how this would be administered and hate bureaucracy) the voucher limit should be the month cost of childcare. Will keep thinking on how to do that but not sure, any ideas anyone?

The Office for Budget Responsibility will be given a new role in accessing and forecasting levels of poverty, while the Social Mobility and Child Poverty Commission will have it's remit extended to the whole of the UK to more effectively hold the government to account[^1].

The Burden of Childcare

We believe that the cost of childcare is so high that it actively inhibits people from finding employment and building themselves a career. That is why, building on the current 15hr free childcare provision for all 3 and 4 year olds, we will look to gradually increase this until a full working week is provided for free for all.

We oppose the governments proposed amendment to the childcare voucher salary sacrifice scheme. The proposed scheme actively punishes people that are out of work and we do not consider this productive (given the cost of care referenced above). The current system is successful and does not need changing. We propose increasing the income and national insurance limits to make child care more affordable from £243 a month to £500 a month for basic rate tax payers. This would provide a saving of £160 a month at full voucher limit. Higher and Additional Rates would be amended to reflect the savings level.

The Office for Budget Responsibility will be given a new role in accessing and forecasting levels of poverty, while the Social Mobility and Child Poverty Commission will have it's remit extended to the whole of the UK to more effectively hold the government to account[^1].

The Burden of Childcare

We believe that the cost of childcare is so high that it actively inhibits people from finding employment and building themselves a career. That is why, building on the current 30hr free childcare provision for all 3 and 4 year olds, we will look to gradually increase this until a full working week is provided for free for all.

We oppose the governments proposed amendment to the childcare voucher salary sacrifice scheme. The proposed scheme actively punishes people that are out of work and we do not consider this productive (given the cost of care referenced above). The current system is successful and does not need changing. We propose increasing the income and national insurance limits to make child care more affordable from £243 a month to £500 a month for basic rate tax payers. This would provide a saving of £160 a month at full voucher limit. Higher and Additional Rates would be amended to reflect the savings level.

anilliams

@anilliams - almost 8 years ago

👍 I'm happy as long as we don't force this as a sudden increase, which your pull request does not.

philipjohn

@philipjohn - almost 8 years ago

Oh @OliverJackson1 this is great - I've been thinking of exactly this!

The first paragraph is great. On the second paragraph, because it talks about the proposed amendment it risks becoming out of date very quickly. I suggest we remove that for now and, if the government amendment passes, propose in the manifesto that we repeal that change.

Finally, I think the last bit about the tax might conflict with our income tax policy.

So ✋ for now.

The Office for Budget Responsibility will be given a new role in accessing and forecasting levels of poverty, while the Social Mobility and Child Poverty Commission will have it's remit extended to the whole of the UK to more effectively hold the government to account[^1].

The Burden of Childcare

We believe that the cost of childcare is so high that it actively inhibits people from finding employment and building themselves a career. That is why, building on the current 30hr free childcare provision for all 3 and 4 year olds, we will look to gradually increase this until a full working week is provided for free for all.

We propose increasing the income and national insurance limits to make child care more affordable from £243 a month to £500 a month for basic rate tax payers. This would provide a saving of £160 a month at full voucher limit. Higher and Additional Rates would be amended to reflect the savings level.

OliverJackson1

@OliverJackson1 - almost 8 years ago

@andrewdwilliams I would envisage that we would look to undertake this over the course of a parliament. Would you be comfortable with that? Or would that be too fast? 5 years feels about right (two increases with 2 years of embedding for each) but obviously open to comment.

@philipjohn I've amended the second paragraph to remove the proposed change (although I actually think that they passed the bill enforcing the change and have been fighting a legal challenge from a childcare voucher provider). I think they are considering implementation in January 2017.

In terms of the second part of your query I think that I've been vague here, I don't mean a change to income tax (exactly how it reads so hugely confusing :D) I'm talking more about where current limitations are. So for a basic rate tax payer, they don't start paying tax until £243 of their Gross Pay is deducted for Childcare Vouchers. It should read as an increased reprieve from tax not an increase in tax. Does that make sense and would it be worth a re-write?

philipjohn

@philipjohn - almost 8 years ago

Great edit, thanks!

You've explained well and I now understand it's not changing the income tax thresholds :) It's just how the taxable amount interacts with childcare vouchers - gotcha 👍