Conservatives Promise to Scrap Childcare Penalty for High Earners
The Conservative Party pledged to remove the £100,000 individual income cap that ends eligibility for government-funded childcare in England. Conservative leader Kemi Badenoch announced the policy ahead of the party's annual conference in Birmingham.
- 30 hours of free weekly childcare would be open to any working parent under the plan.
- £700 million per year is the Conservatives' estimated annual cost of the policy.
- £1.6 billion in projected savings by 2029-30 would come from reducing arm's-length body headcount.
- NHS organisations are excluded from the proposed civil service job cuts.
Why it matters: The threshold is calculated on a single parent's income, not household income. Economists have noted it can leave a parent worse off overall even after a significant pay rise.
- Tax-free childcare accounts, worth up to £2,000 per child per year, are also subject to the same £100,000 cap.
How 3 sources split on this story
Where they split: The disagreement is whether scrapping the threshold is a pro-work, pro-family reform or a policy that redirects public money toward higher earners at public-sector cost.
Center coverage, 1 sources: The center presents the policy on its own terms — a supply-side reform addressing a known work disincentive — while including Labour's rebuttal and questioning whether millionaires would benefit.
Left coverage, 1 sources: The left frames the pledge as a handout to high earners funded by cuts to public institutions, noting the Conservatives originally set the thresholds they now call absurd.
What’s next: Shadow chancellor Andrew Griffith will deliver a conference speech on Monday framing broader tax simplification.
- The Conservatives, polling behind Labour and Reform UK, plan to set out more policy at this week's conference.
- Which specific arm's-length bodies would face cuts, and how many jobs would be lost?
- Would the policy survive a full costings assessment ahead of the next general election?