You are connecting from Lake Geneva Public Library, please login or register to take advantage of your institution's Ground News Plan.
Published 3 hours ago • loading... • Updated 2 hours ago
Tories Pledge to End £100,000 Childcare ‘Cliff Edge’ on Eve of Conference
The party said the change would remove a cliff edge that leaves some parents worse off after pay rises and distort work incentives, economists said.
On Saturday, Conservative Party leader Kemi Badenoch pledged to abolish the £100,000 childcare "cliff edge" ahead of the party's annual conference in Birmingham, describing the current system as "absurd."
Under current rules, parents lose entitlement to 30 hours of free weekly childcare once individual income surpasses £100,000. Badenoch argued this disincentivizes work, stating, "people who work harder don't get punished for doing so."
The Tories estimate the plan costs £700 million annually, funded by reducing headcount at arm's-length bodies like the Environment Agency and Arts Council England, potentially saving £1.6 billion by 2029-30.
A Labour Party spokesperson criticized the proposal, noting the Tories set the original thresholds and defended current government investment in early years through an announced "Childcare Review."
Shadow Chancellor Andrew Griffith will frame the policy as a "first step" toward simpler taxes during his conference speech on Monday, positioning it as a strategy to boost economic growth.