Tories pledge to scrap £100,000 childcare 'cliff edge'
BBC News 2026-10-03 21:03:22
Context: The Conservative Party has pledged to scrap the £100,000 childcare 'cliff edge' in England, which currently means parents lose out on government-funded or tax-free childcare when they earn above this threshold. The announcement was made ahead of the party's annual conference in Birmingham, as part of broader efforts to address issues in the tax system that damage incentives to work or invest. The move is intended to boost economic growth and tackle the "unfairness" of the current system.
Key Facts
- The current system in England means that only families where no parent earns more than £100,000 a year are eligible for government-funded or tax-free childcare.
- Working parents in England have been entitled to 30 hours of free childcare for children aged between nine months and four years old since September 2025, provided both parents earn less than £100,000 a year.
- The government's tax-free childcare scheme, which provides £2 of government funding for every £8 paid into an online childcare account, up to £2,000 per child per year, also has a £100,000 threshold.
- The Conservative Party plans to fund the removal of the childcare 'cliff edge' by cutting the number of public servants working in "executive non-departmental public bodies", saving £1.6bn by 2029-30.