Fred Mackintosh backs campaign to save Childcare Vouchers

2.00.00pm GMT Sat 7th Nov 2009

Edinburgh South Liberal Democrat Westminster Spokesperson Fred Mackintosh has backed the national campaign against the Labour Government's decision to remove tax exemption for Childcare Vouchers that helps 340,000 working parents across Britain.

Fred Mackintosh said, "This cut will his middle income hard working families hard. A couple paying basic tax currently save £900 each towards their childcare costs, but will now see a 20% rise in those costs as a direct result of this change. The vouchers are also a key source of income for the nurseries and childminders that are vital to our community."

Childcare Vouchers have been exempt from income tax since 2005. Labour Ministers have claimed that abolishing this exemption will prevent those on high incomes benefiting and plan to use the money to fund 250,000 childcare places for low income families.

Fred Mackintosh continued, "Expanding free places for two year olds is a good idea, but it shouldn't be other families with children that have to pay for it .

"The Government could have taken the option of capping the tax exemption to exclude those on high incomes, but instead hundreds of families in Edinburgh South who already use and rely on the vouchers will see their childcare costs rise in the middle of this recession."

The Liberal Democrats want to increase tax on polluting airline flights and large cars, cut tax reliefs for the very rich and use the money raised to cut income tax by £700 a year for all on the basic rate of tax by increasing the personal allowance to £10,000.

The campaign to save Childcare Vouchers is backed by the Federation of Small Businesses as many local business rely on the vouchers to enable vital employees to continue to work without costing the business money they can't afford.

Many parents, employers and child carers are lending their voices to the campaign to save Childcare Vouchers y signing a petition on the Downing Street website calling on the government to reverse its decision. Over 74,000 signatories at last count.

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The petition can be found by following this link.