Childcare Payments Act 2014

A Bill to make provision for and in connection with the making of payments to persons towards the costs of childcare; and to restrict the availability of an exemption from income tax in respect of the provision for an employee of childcare, or vouchers for obtaining childcare, under a scheme operated by or on behalf of the employer.

The Bill introduces a new tax-free childcare scheme to support eligible parents with childcare costs.

Key areas

• the Government would provide 20 per cent support on costs up to £10,000 per year for each child via an online account
• the Government would top up any payments made into the account, capped at a maximum Government contribution of £2,000 a year for each child.

The Bill extends to the United Kingdom. In relation to Northern Ireland, the Bill requires a Legislative Consent Motion of the Northern Ireland Assembly