May 2015


Childcare subsidy to be doubled

Queen’s Speech announces doubling of Childcare subsidy from 15 to 30 hours a week.

Plans to double state-subsidised childcare for three- and four-year-olds to 30 hours a week were set out in the Queen’s Speech to the new parliament, this week.

Already, children of this age in England are entitled to 570 hours of free early education or childcare a year. This works out at 15 hours a week for 38 weeks of the year.

Legislation was also announced to ensure that increases to the Income Tax personal allowance would reflect changes to the national minimum wage. In future, people working 30 hours a week on the minimum wage will not pay Income Tax.

Other plans announced include ensuring there are no rises in Income Tax, VAT or National Insurance for the next five years, reform to strike laws and reducing “red tape” on small businesses.

Posted byAnn TigheinPayroll