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Patricia Hewitt
Opposition: Patricia Hewitt

Ex-ministers warn over childcare tax changes

Paul Waugh, Deputy Political Editor
11 Nov 2009


Gordon Brown faced a Labour revolt today over plans to axe childcare tax breaks as nine former Cabinet ministers warned that the party risked losing the support of working mothers.

They lambasted the Prime Minister's decision to abolish childcare vouchers that are used by more than 340,000 parents, saving them up to £2,400 a year.

The Standard revealed in September that Mr Brown was planning to switch funding away from the vouchers to providing means-tested childcare.

Since his announcement at Labour's conference more than 70,000 people have signed a petition on the Downing Street website condemning the abolition of the tax break. Website Mumsnet.com has also been inundated with complaints about the plans.

Former health secretary Patricia Hewitt and other leading Blairite former ministers declared that the decision would "mark the undoing of one of Labour's landmark achievements".

Critics say that the revolt is similar to that over the 10p tax band, when No10 realised late in the day the damage caused by a Treasury change.

"Surely this is not the time for us to remove a key support from hard-working families at the very point we need them at their most engaged and productive to fuel the recovery from recession," the former ministers said.

"Crucially, in the run-up to an election, it will remove support for working parents and for businesses in key marginal constituencies."

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