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NCMA has submitted a response to HM
Revenue & Customs discussion paper on the future of Tax
Credits.
NCMA supports the basic principle that tax credits make funds
available for parents to help them afford quality childcare.
However, we are keen to ensure that these payments do boost the
take-up of childcare and help raise fees so as to enable
childminders to afford to invest in the quality of their own
service.
NCMA expressed caution about proposals to move from averaged to
actual costs, as this would require onerous monthly reporting of
actual childcare expenditure either by parents or by providers.
Childcare providers are already hard-pressed and do not need
additional regulatory burdens arising from HMRC reporting
requirements. Payments in arrears would also adversely affect the
many childminders on low incomes.
NCMA has warned against making payments direct to childminders
if this were to make providers liable for overpayments (as parents
currently are). In addition, NCMA believes that childminders would
not welcome systems that require initial set-up costs (such as
electronic payment cards) or additional training (where their time
might better be spent training to improve their practice).
Rather, NCMA proposes payment direct to parents in a format that
can only be used to pay childcare providers but where the burden on
those providers is minimised: for example, by using the existing
childcare vouchers that many childminders already accept.
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