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PM facing revolt over childcare vouchers

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Published Date: 12 November 2009
GORDON Brown is facing a revolt from senior South Yorkshire MPs over a controversial plan to cut childcare vouchers.
Three former ministers – Sheffield Heeley MP Meg Munn, Don Valley MP Caroline Flint and Rotherham MP Denis MacShane – have warned the Prime Minister that removing an "effective and popular" benefit for 340,000 parents will penalise those on low incomes.

They have also told him his policy threatens marginal Labour seats in the run-up to next year's general election.

Earlier this year Mr Brown announced he was removing tax relief for employer-based childcare vouchers, arguing too much of the money was going to the middle classes.

Under the voucher scheme, a family on the basic rate of tax, where both parents claim the tax relief, can save £1,924 a year on the cost of childcare.

The PM promised the money saved from phasing out the vouchers will go towards providing 250,000 two-year-olds from 'modest or middle incomes' with 10 hours of free childcare a week.

But the cuts have sparked an angry backlash with more than 75,000 people signing a Downing Street petition criticising the decision.

And it now threatens to provoke a major Labour revolt with a influential group of nine former ministers writing to Mr Brown to urge him to review the decision.

Mrs Munn's involvement in the letter is particularly significant because she is a former women's minister. Ms Flint and Mr MacShane are both former Europe ministers.

Mrs Munn said: "The childcare vouchers have enabled a lot of families to get over that decision of whether it's worth the mother going back to work and enabled a lot of employers to encourage mothers to return to the work place.

"There has been such an outcry over removing child care vouchers that it shows that they are really valued."

The MPs' letter states the cut is "greatly unfair" and would "mark the undoing of one of Labour's landmark achievements".

What do you think? Add your comment below.

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  • Last Updated: 12 November 2009 8:24 AM
  • Source: Sheffield Star
  • Location: Sheffield
 
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Sheffield-born 46,

12/11/2009 10:07:13
They're only concerned because the move threatens marginal Labour seats. They couldn't care less about their constituents, only about themselves.
2

Women in Black,

Doncaster Again 12/11/2009 12:55:24
Why not try to change to agenda when you have not been able to answer why the spouse is your chosen manager, why the MPs expenses claimed included £12,500 stamp duty, why you say MPs should not pay back the money and more. Funny, we seem to hear nothing in the press for a long time them comes along a smell of election and we get the MPs crooning into our news. Too late, too little and too much of insulting our trust has been done to let us support any MPs that kick back at their OWN Prime Minister. Get rid of Labour MPs.
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