New childcare passport scheme to simplify childcare funding

NDNA have proposed that political parties should introduce a new childcare passport scheme to help simplify childcare funding.It is being asked by nurseries that the new childcare passport scheme should be included in politcal parties manifestos. As we currently know parents can access funding through four main sources;

• Childcare voucher scheme through their employee
• Tax-free government scheme that was introduced this year
• Tax credits or universal credit
• Free early years entitlement

The idea of the new childcare passport scheme would bring all these sources of funding together under one account making it easier for parents. 

The new tax-free childcare government scheme would enable parents to pay into an account, the Government will contribute  20p for every 80p parents put in. Money sitting in parents accounts can then be paid to childcare providers.

Providing parents with all information on one place will allow parents to make their own choices on how they pay their childcare provider directly, making it easier for childcare providers to be paid.

It will mean departments such as HMRC, DWP and the Department For Education will need to work together to deliver this new childcare passport system.