Government plans more help with childcare costs

The Prime Minister and Deputy Prime Minister will today publish a mid-term review which looks back at how successful the Government has been in meeting its coalition agreement promises, and commits them to further reforms.

The review will include a raft of pledges on childcare bills and help towards care costs for the elderly.

Details of some policy pledges are still being thrashed out, but announcements fleshing out the proposals are expected to be rolled out in the coming months at a rate of almost one a week.

Childcare pledge

One of the first is expected to focus on extra help for families struggling to meet childcare costs.

David Cameron and Nick Clegg are considering a scheme that would allow families to claim up to £2,000 per child every year from their tax bills to cover the cost of childminders and nurseries, according to reports.

It could mean working women becoming entitled to claim a flat-rate tax allowance to help cover costly bills in a move that would replace the £700 million voucher and allowances scheme.

The review also pledges to "provide dignity in old age", with the expected new £140 flat rate pension as well as help towards the cost of long-term care.

It follows a review by economist Andrew Dilnot, which recommended setting a care bill limit of between £25,000 and £50,000 to stop pensioners being forced to sell their homes to cover costs. The Government has looked at a number of options, including a £75,000 limit.

New reforms

The joint foreword to the mid-term review states: "We will support working families with their childcare costs. We will build more houses and make the dream of home ownership a reality for more people.

"We will set out two big reforms to provide dignity in old age: an improved state pension that rewards saving, and more help with the costs of long-term care."

"We will be making announcements about each of these policy initiatives in due course."

Labour shadow education secretary Stephen Twigg says: "One of Cameron's first acts in government was to cut Labour's support to help parents pay for childcare, leaving families facing higher costs and forcing tens of thousands of women out of work."