Pre-Budget Report 2004: roundup of childcare announcements

One million extra childcare places will be made available by 2010 under plans unveiled in the Chancellor’s 2 December 2004 Pre-Budget Report. This will be done by boosting the UK's network of children's centres and getting schools to open from 8am to 6pm, at a cost of £600m by 2007/08.

Gordon Brown also increased paid maternity leave from six to nine months and proposed an extension of flexible working rights for parents. Many parents will also get £50 per week help with the costs of childcare. From April 2005, all employer-supported childcare, not just childcare in work-based nurseries, will qualify for National Insurance (NI) and income tax relief, capped at £50 a week.

The Chancellor said he was making extra provision for childcare to create a "family-friendly welfare state" aimed at boosting the economy. Under measures announced by Gordon Brown was a right for mothers to transfer their entitlement to paid leave to the father. At present, fathers have the right to two weeks' paid paternity leave.

The Government will also consult on allowing parents with children over the age of six to ask their employers for flexible working arrangements, and childcare tax credit will increase. The measures announced all form part of the Government's 10-year childcare strategy.
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