Childcare vouchers - Tax break to stay

In September Gordon Brown announced that tax relief would end for on childcare vouchers used in Ofsted-approved nurseries across the UK.

This week, in the face on intense pressure from Labour backbenchers, including former ministers, he has said that a tax break will be retained. But there will be some changes. From 2011 the relief will be applied to all vouchers at the standard income tax rate of 20% to new entrants to the scheme. The position will be unchanged for existing users for childcare vouchers issued in the future, including who benefit from tax relief at the higher rate.