Childcare plans may cut income to poorest families – thinktank

'The poorest working families will not benefit from the government's proposed childcare support – and could lose money under the scheme – while those higher up the income scale will get substantial payments, according to a leading thinktank.

The Resolution Foundation says 900,000 lower-income working families with children will miss out on the planned additional childcare support because all the adults in the family will not earn above the 2016 income tax threshold of £10,000 – a prerequisite before the state assistance kicks in.

Parents who do qualify will be able to claim back 85% of their childcare costs, up from 70%. But families where both parents work and receive universal credit but only one adult earns enough to pay income tax will in effect be denied the increased support that the government is offering.'

Read more: Childcare plans may cut income to poorest families – thinktank