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Chancellor urged to fix £100k childcare ‘cliff edge’ that prompts parents to cut work
UK NewsPoliticsBusiness•September 10, 2026 at 12:01 AMNational

Chancellor urged to fix £100k childcare ‘cliff edge’ that prompts parents to cut work

By Heather Stewart Economics editor•The Guardian - UK News

Threshold pushes some to reduce hours or stop working to avoid losing entitlement, report warns John Healey has been urged to fix the £100,000 childcare “cliff edge”, that means some higher-paid employees cut back on work to avoid losing their entitlement.Since the latest expansion of taxpayer-funded childcare in 2024, families with young children in which both parents earn less than £100,000 a year can be entitled to 30 hours a week of care - or none at all, if one of them cross that threshold. Continue reading...

Threshold pushes some to reduce hours or stop working to avoid losing entitlement, report warns

John Healey has been urged to fix the £100,000 childcare “cliff edge”, that means some higher-paid employees cut back on work to avoid losing their entitlement.

Since the latest expansion of taxpayer-funded childcare in 2024, families with young children in which both parents earn less than £100,000 a year can be entitled to 30 hours a week of care - or none at all, if one of them cross that threshold.

Continue reading...