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

Predictions and the value of financial advice

Predictions and the value of financial advice

'If there is one profession that has had to become comfortable with uncertainty, it is ours'

Andrew Aldridge
clock 10 September 2026 • 7 min read
Majority of advisers want CGT reporting in platform tax packs

Majority of advisers want CGT reporting in platform tax packs

Some 39% of advice firms cite tax planning as a priority

Sophia Panayi
clock 09 September 2026 • 1 min read
Healey pledges growth through devolution but dodges tax questions

Healey pledges growth through devolution but dodges tax questions

First major speech as chancellor

clock 07 September 2026 • 3 min read