Free hours childcare extension 'deepens' £100k earnings cliff edge

'This is a no-brainer for people who have crept over the threshold'

clock • 4 min read

Laura Suter explores the £100,000 salary cliff edge for free hours childcare extension but has an answer up her sleeve...

Amid the return to school, endless colds and need to wean your children off chocolate before 8am post-Christmas, a bright spot for parents this January is that the government's extended childcare scheme has begun to be rolled out. Under Rishi Sunak the government is extending the free hours for pre-school children, which currently is broadly only for three and four-year-olds. It means that from April parents of two-year-olds will be able to claim 15 free hours at a nursery or a childminder - cutting costs for thousands of families. While the handout kicks in from April, applications open...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

Budget 26: Income tax threshold freeze remains until April 2031

Budget 26: Income tax threshold freeze remains until April 2031

No changes on last year’s Budget

Isabel Baxter
clock 28 October 2026 • 2 min read
IHT on pensions gets technical changes ahead of 2027 start

IHT on pensions gets technical changes ahead of 2027 start

Rules on liabilities linked to trusts also tightened

Jen Frost
clock 28 October 2026 • 6 min read
Budget 26: CGT headline rates untouched following speculation

Budget 26: CGT headline rates untouched following speculation

CGT relief announced for founders

Sophia Panayi
clock 28 October 2026 • 3 min read