Kevin Lang backs campaign to save childcare vouchers

5.49.00pm GMT Wed 11th Nov 2009

Kevin Lang is campaigning against Labour's planned tax on childcare vouchers.

Edinburgh North & Leith Liberal Democrat candidate Kevin Lang has backed the national campaign against the Labour Government's decision to remove tax exemption for Childcare Vouchers that helps 340,000 working parents across Britain.

Kevin said, "I know that many families in Edinburgh North & Leith rely on the childcare vouchers. This proposed cut would hit them hard hard and at the worst possible time. A couple paying basic tax currently save £900 each towards their childcare costs, but will now see a 20% rise in those costs as a direct result of this change. The vouchers are also a key source of income for the nurseries and childminders that are vital to our community."

Childcare Vouchers have been exempt from income tax since 2005. Labour Ministers have claimed that abolishing this exemption will prevent those on high incomes benefiting and plan to use the money to fund 250,000 childcare places for low income families.

Kevin Lang continued, "Expanding free places for two year olds is a good idea, but it shouldn't be other families with children that have to pay for it .

"The Government could have taken the option of capping the tax exemption to exclude those on high incomes, but instead hundreds of families in Edinburgh North & Leith who already use and rely on the vouchers will see their childcare costs rise in the middle of this recession."

The campaign to save Childcare Vouchers is backed by the Federation of Small Businesses as many local business rely on the vouchers to enable vital employees to continue to work without costing the business money they can't afford.

Many parents, employers and child carers are lending their voices to the campaign to save Childcare Vouchers by signing a petition on the Downing Street website calling on the government to reverse its decision.