Tax break for childcare costs in South Yorkshire

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FIFTY thousand South Yorkshire families are set to benefit from tax changes announced by the Government.

The Tax-Free Childcare scheme will be worth up to £1,200 per child, and could save a ‘typical’ working family with two children under 12 up to £2,400 a year.

According to Government figures, almost 21,000 families will benefit in Sheffield, 12,000 in Doncaster, 10,000 in Rotherham and 9,000 in Barnsley.

The scheme will be phased in from 2015, with parents who have children under five eligible in the first year, then expanding to include parents of all children under 12.

Deputy Prime Minister and Sheffield Hallam MP Nick Clegg said: “I want to help every family to get on in life.

“Already, we have put money back in people’s pockets by cutting income tax, and extended free childcare entitlements for pre-school children.

“Delivering tax-free childcare is the next step to ensuring all families can work and get on. The rising cost of childcare is one of the biggest challenges parents face and it means many mums and dads can’t afford to work.”

To be eligible, families will have both parents in work, each earning less than £150,000 a year, and will not already receive support through tax credits and the new universal credit.