Budget 2017 introduces tax free childcare saving families up to £2,000 a year as entitlement for three and four-year-olds
TWO million households will be eligible for tax free childcare by the end of the year the Chancellor confirmed during today's Budget speech.
Working parents with three-and-four-year-olds will see their free childcare entitlement doubled to 30 hours a week from September, Philip Hammond confirmed - a move worth up to £5,000 a child.
Key points from the Spring Budget
Here are the Chancellor's proposed changes
- SOCIAL CARE
An extra 2bn funding for social care and the NHS has been pledged over the next three years
- NATIONAL INSURANCE
Millions of self-employed workers will see their National Insurance bill rise from 9% to 11% over the next two years
- CHILDCARE
Tax free childcare to save families up to £2,000 a year as entitlement for three and four-year-olds is doubled
- BOOZE AND FAGS
Duties on alcohol to rise with inflation and tobacco to increase at 2% above inflation
- WAGES
Living Wage to increase by 30p an hour from £7.20 to £7.50
- BUSINESS RATES
Tax break of £1,000 for pubs and a £300million discretionary fund for councils to help struggling businesses
- SUGAR TAX
Chancellor announces levy of 8p to a can of Coca-Cola and 24p for a litre of sugary drinks
- For all the latest see out Spring Budget live blog
The new tax-free childcare will see eligible families get 20 per cent of annual childcare costs paid for by the Government.
The chancellor revealed it will be available to all parents by the end of the year.
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The scheme could see a £2,000 saving per child under 12-years-old each year, or up to £4,000 in savings for the families of disabled children up to the age of 17.
To qualify, parents will have to work 16 or more hours a week, and each earn at least £115 a week.
It will not apply to those who earn more than £100,000 each per year.
The scheme does not rely on employers enrolling.
Follow the announcements and reaction with Sun Online's Spring Budget live blog