Key facts
- UK Conservatives plan to abolish the £100,000 income threshold for free childcare.
- The reform aims to end the "cliff edge" where free childcare entitlement ceases for high earners.
- The estimated annual cost of the proposed change is £700 million.
- Currently, free childcare is cut off if one parent earns over £100,000, regardless of the other parent's salary.
- The new plan would allow all parents working 16+ hours a week to claim free childcare.
- Kemi Badenoch described the current system as "absurd" and a disincentive to work.
The UK Conservative Party plans to eliminate a "childcare cliff edge" that restricts free childcare for families earning over £100,000, a move Kemi Badenoch described as "absurd" and a disincentive to work.
The proposed reform, estimated to cost approximately £700 million annually, would allow all working parents, regardless of income, to claim 30 hours per week of free childcare, provided they work at least 16 hours a week. The current system, implemented under Rishi Sunak's government, cuts off this entitlement once a parent's income exceeds £100,000.
Badenoch stated that the government should not make difficult work and childcare choices harder for families and that no one should turn down a promotion or pay rise due to childcare costs. She emphasized that the current system disproportionately affects women's career progression.
A Labour spokesperson criticized the Conservative proposal, calling it a tax policy that benefits higher earners and questioning the party's decision to unpick a threshold they initially set.