A controversial £100,000 earnings threshold in expanded childcare support is pushing some higher-paid workers to reduce their hours or leave employment entirely to retain eligibility. Critics argue the policy creates an abrupt "cliff edge," forcing families to make difficult financial trade-offs when one parent’s income exceeds the limit. Under the current system, eligible parents receive 30 hours of free weekly childcare—but crossing that income barrier means losing access altogether. Campaigners are calling for reforms to prevent the policy from unintentionally discouraging work among higher-earning families.
Critics say threshold pushes higher-paid staff to cut back on work and often mothers to stop working to avoid losing entitlementJohn Healey has been urged to fix the £100,000 childcare “cliff edge”, that means some higher-paid employees cut back on work to avoid losing their entitlement.Since the latest expansion of taxpayer-funded childcare in 2024, families with young children in which both parents earn less than £100,000 a year can be entitled to 30 hours a week of care - or none at all, if one of them cross that threshold. Continue reading...
