A four-pronged approach is at the heart of the Chancellor’s reforms for getting parents back to work. Outlined in his Pre-Budget Report delivered to the House of Commons this afternoon the framework includes:
- Reforms to allow parents to stay at home longer when their child is born and have the means to do so
- Changes to help parents enjoy more flexibility in the workplace when their child is young
- Guarantees to more accessible, affordable and safe childcare while they are at work
- Equal opportunities for children to enjoy the highest quality education and care
Central to these reforms are a planned extension to be implemented by 2007 to the Ordinary Maternity Leave period from six to nine months. Child tax credits and benefits will also play their part.
The Paymaster General, Dawn Primarola has set out the Child and Working Tax Credit rates for 2005-06.
Upgrades include:
- Increase to the child element of the Child Tax Credit by £65 from April 2005
- Inflation-based boost to the disabled child elements of Child Tax Credits for 2005-06
- Working Tax Credit and the first income threshold for tax credits upwards revision in line with inflation
- Rates of Child Benefit and Guardian’s Allowance for 2005-06 will also receive an inflation-matching rise
- Limit lifted on eligible childcare costs in Working Tax Credit to £175 per week for one child and £300 per week for two or more children from April 2005; the maximum share of eligible costs covered will be 70% in 2005-06, rising to 80% in 2006-07
To make work pay, said the Chancellor, the national minimum income guarantee for a single earner couple with one child will be a guaranteed £258 a week and for a lone parent working part time with one child £199 a week, the equivalent of £12 an hour.
Forty pounds a week will also be offered to 250,000 lone parents or £2000 a year for the first year they get back to work.
