Record number of Edinburgh families get help for childcare
A record number of families in Edinburgh were using a government scheme to help with the cost of childcare last year, new figures show.
The Tax-Free Childcare scheme tops up cash families pay into a pot for services such as childminders, nurseries and nannies.
Across the UK, there were more parents than ever using it in the 2022-23 financial year.
However, industry body the Early Years Alliance called it a “regressive policy” and urged the government to redirect the funding to ensure it benefits families most in need.
HMRC figures show around 4820 Edinburgh families used the scheme in the year to March 2023 – up from 3880 the year before. This was the highest number since records began in 2017-18, when it was 375 – a more than 12-fold increase.
Families get £2 for every £8 they put into an account set up for childcare spending – up to £2000 per child per year, or £4000 for a child with a disability. It is available for children aged 11 and under or 16 and under if they have a disability.
There were almost 650,000 families benefiting from the scheme across the UK – 27 per cent more than in 2021-22 and a substantial rise from just 57,000 six years ago.
Neil Leitch, CEO of the Early Years Alliance, said countless families are still unaware that they are eligible to receive support through it or that it exists at all.
He said: “What’s more, it remains an entirely regressive policy, with parents with more disposable income receiving more financial support than those with less.”
He warned that childcare providers are being forced to raise fees due to “sustained underfunding”, and the sector is facing “even greater pressure” with early entitlements soon to be expanded.
Nationally, there were open accounts for 1.3 million children, but the used ones were for 836,000 children, including 6325 in Edinburgh. The latest population estimates from the Office for National Statistics show there were 9.1 million children aged 11 or under in the UK as of 2021.
Unfortunately, not all children qualify for tax-free childcare see panel, right.