Childcare debacle
Fury of parents after HMRC computer chaos Fears that children will lose nursery places
THOUSANDS of children are at risk of losing nursery places next month after a meltdown in the Government’s new childcare scheme.
Parents have been left desperate as chaos has enveloped two key HM Revenue & Customs schemes that were supposed to be helping them to return to work.
Under the first scheme, the number of free childcare hours for working families with children aged three and four is doubling from 15 to 30. But the online system for families to register their entitlement to the extra hours has been beset by problems, with thousands still waiting for applications to be approved.
Under the second policy, ministers have set up an online taxfree childcare savings scheme, which gives parents a £2 ‘topup’ for every £8 they save towards nursery care.
Again, however, computer glitches have meant many families cannot even open an account – or release the money to a childcare provider. As a result, parents hoping to get youngsters into nursery places next month – the start of the school year – are panicking that spaces will be lost.
Some have been forced to stump up thousands of pounds in fees they shouldn’t have had to pay in order to secure a place. Others are missing out on vital topups worth hun dreds or even thousands of pounds, to pay for childcare. A Facebook group objecting to the problems has 16,000 members including families, nurseries and childminders.
To run the two schemes, HMRC introduced a new Childcare Service computer system for parents. The benefits are only available online, although a helpline is available.
Problems began to emerge in June when parents were unable to access the website. HMRC said this was a teething problem.
But two months later, many families say they still cannot log on to the website or find it crashes midway through an application. When they then try to ring the helpline, they can’t get through.
A Freedom of Information request by MoneySavingExpert.com revealed that almost 1,000 official complaints were made about the Childcare Service website between April and July. MoneySavingExpert spokesman Sam Dunn said: ‘It’s unacceptable that parents – many striving to stick to budgets and relying on Government help to pay for childcare – face not being able to get the free hours they’re entitled to in September or get access to cheaper childcare.’
Nicky Morgan, chairman of the Treasury select committee, has written to HMRC, saying: ‘ It’s concerning that some parents have struggled to apply for childcare funding due to technical issues with the Government’s Childcare Service website.
‘ To make matters worse, it appears the Childcare Service helpline, for parents suffering problems with the website, is also experiencing technical difficulties’.
Purnima Tanuku, of the National Day Nurseries Association, added: ‘What started out as “teething troubles” are persisting months after launch, with parents and childcare providers growing increasingly frustrated.’ An HMRC spokesman said: ‘We know some parents and childcare providers have experienced difficulties accessing the service and we are sorry about the inconvenience.
‘We’ve now made significant improvements based on customer feedback and on average more than 2,000 parents are applying successfully every single day.’
HMRC added that parents may be able to claim compensation. To find out more, go to gov.uk/guidance/ childcareservicecompensation
‘ Parents growing increasingly frustrated’