Martin Lewis says parents missing out on £2,000 | U.Ok.Finance News
Martin Lewis has warned that 1000’s of households throughout the UK are missing out on a £2000 benefit due to the Government’s ‘misleading’ spin. The Money Saving Expert defined that 1.3 million households are eligible for a ‘Tax-free’ Childcare scheme that may covers childcare prices – together with nurseries, childminders, and even some vacation camps.According to gov. UK, below the scheme, one can earn advantages up to £500 each 3 months (up to £2,000 a 12 months) for every of their kids to help with the prices of childcare. However, Mr Lewis claimed that the scheme’s identify is ” appallingly misleading,” which is why not many are able to take advantage of it.He wrote in his blog: “Calling the scheme Tax-Free Childcare was a political spin to ensure the government gets credit for the scheme.“Unfortunately the name is appallingly misleading, and probably partly responsible for the scheme having a much lower take up than it should. It’s not about tax in anyway, and isn’t linked to the tax rate you pay.””A greater identify can be ‘Working Family Childcare Top-up’, as a result of it is successfully a discounted childcare financial savings scheme the place you save after which pay for childcare with a 25 p.c top-up.”The Government-backed scheme is designed in order that for each 80p you put into your Tax-Free Childcare account, the state will add 20p.He stated: “1.3million families are eligible. There are 825,000 of the 1.3 million that are not claiming and this is worth upto £2,000 a year of money for free. “If you are paying for childcare, you go to Gov.uk and open a tax-free childcare account. For every 80p you put in there, the state adds 20p. So, you put £80 in, and you get £20 added. You put £800 in, and you get £200 added.“Upto a maximum of £500 per quarter, so, £2000 per year of free money to pay towards childcare. That is a massive amount of cash for anyone shelling out, and that includes, if you are only doing it for the summer.“If you are only paying for childcare for summer, as long as the place accepts tax-free childcare, which most do, then you can use this top-up. It’s effectively subsiding the childcare that you pay, which is why I am campaigning for it to be called ‘The Working Family Childcare Top Up’.”
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