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Childcare Payments Bill evidence programme announced

9 October 2014 (updated on 9 October 2014)

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The House of Commons Public Bill Committee considering the Government's Childcare Payments Bill will hear oral evidence on Tuesday 14 and Thursday 16 October 2014.

The Committee will then consider the Bill on Tuesday 21 October, Thursday 23 October and Tuesday 28 October.

The provisional programme of witnesses for the Childcare Payments Bill has been agreed by its Programming Sub-Committee.

The meetings are open to the public.

Programme and witnesses

Taking place in Committee Room 16 in the Palace of Westminster:

Tuesday 14 October - morning

From c9.25am until no later than 10.30am

  • National Day Nurseries Association
  • British Association of Professional Nannies

c10.30am until no later than 11am

  • National Savings and Investments

Tuesday 14 October - afternoon

From c2pm until no later than 2.30pm

  • Childcare Vouchers Providers Association

c2.30pm until no later than 3.15pm

  • 4Children
  • Working Families
  • Mumsnet

c3.15pm until no later than 4pm 

  • Citizens Advice
  • Low Incomes Tax Reform Group
  • Family and Childcare Trust

c4pm until no later than 4.45pm 

  • Children’s Society
  • Child Poverty Action Group

Thursday 16 October - morning

From c11.30am until no later than 12.30pm

  • Chartered Institute of Payroll Professionals
  • Chartered Institute of Personnel and Development

c12.30pm until no later than 1pm

  • London School of Economics and Political Science

Thursday 16 October - afternoon

c2pm until no later than 2.30pm

  • Institute for Public Policy Research
  • Resolution Foundation

c2.30pm until no later than 3.15pm

  • HM Treasury
  • HM Revenue & Customs

Line by line scrutiny of the Bill

Line by line scrutiny of the Bill will take place in Committee Room 14, Palace of Westminster, on the following days:

  • Tuesday 21 October 9.25am and 2pm
  • Thursday 23 October 11.30am and 2pm
  • Tuesday 28 October 9.25am and 2pm

The Committee must complete consideration of the Bill no later than 5pm on Tuesday 28 October.

These sessions will be open to the public on a first come, first served basis. There is no system for the prior reservation of seats in Committee Rooms.

It is advisable to allow about 20 minutes to pass through security checks. Timings and room numbers are subject to change.

Aims of the Childcare Payments Bill

The Bill introduces a new Tax-free Childcare scheme to support eligible parents with childcare costs. Under the scheme, 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 scheme would be available to parents in the UK. To qualify for top-up payments, both parents, or a lone parent:

  •  must be over 16 and in paid work (employed or self-employed);
  • must not be receiving support through tax credits, Universal Credit or employer-supported childcare;
  • must not be paying tax at the additional rate (For 2014-15, the additional rate is 45 per cent on income over £150,000).

Money in the account would only be permitted to be spent on 'qualifying childcare'. In addition, parents would only be able to use the account to pay for childcare that enables them to work.

Qualifying childcare would include registered or approved childcare but not care provided in the course of compulsory education. Provision for what is, or is not, to be regarded as registered or approved childcare may be made by regulations.
 
A person applying for a Tax-Free Childcare account would be required to make a 'declaration of eligibility' stating that they satisfy the eligibility criteria. Eligibility for the scheme would then be set for a quarterly entitlement period.
 
Eligible parents making payments into their childcare account would have the amounts topped-up by the Government. Where there is more than one qualifying child, separate accounts would be required.
 
Tax-Free Childcare would not be available to tax credit or Universal Credit claimants. The Bill includes provisions to ensure that those claimants would have their tax credit or Universal Credit award terminated when a valid declaration of eligibility was made for the purpose of the Tax-Free Childcare scheme.
 
The new scheme would replace the existing Employer-Supported Childcare (ESC) scheme (except in relation to workplace nurseries) which is delivered through a tax and National Insurance exemption, available to parents whose employers offer the scheme.

Accordingly, self-employed parents cannot benefit from the ESC scheme. Once the new Tax-Free Childcare scheme is implemented, the Bill provides powers which would be used to close ESC to new entrants.
 
The Tax-Free Childcare scheme is likely to be managed on behalf of the Government by Her Majesty’s Revenue and Customs (HMRC) and is expected to be introduced in the autumn of 2015.

Follow the progress of the Childcare Payments Bill

Have your say on the Childcare Payments Bill

Further Information

The Scrutiny Unit can help with any queries about oral evidence.

This article was produced by the Commons Digital Outreach Team. Follow @HouseofCommons on Twitter for updates on the UK House of Commons Chamber.

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