British families earning more than £100,000 could become eligible for government funded childcare under a new Conservative proposal unveiled as the party gathers for its annual conference in Birmingham.
Conservative leader Kemi Badenoch has pledged to abolish the current £100,000 income threshold, arguing that the system can leave some parents financially worse off after receiving a pay rise or promotion.
What would change?
Under current rules in England, eligible working parents can receive 30 hours of funded childcare, but the entitlement is lost when one parent crosses the £100,000 adjusted net income threshold.
Under the Conservative proposal, parents working at least 16 hours a week would remain eligible for the 30 hours regardless of how much they earn.
Badenoch argues that the sudden loss of childcare support creates a powerful financial disincentive for some parents to increase their earnings.
How much would it cost?
The Conservatives estimate that removing the threshold would cost around £700 million annually.
The party says it would fund the policy through reductions in staffing at certain public bodies, including organisations such as Arts Council England and the Environment Agency. NHS organisations would be excluded from those proposed reductions.
Labour pushes back
Labour criticised the proposal, arguing that it would prioritise support for higher earners. A Labour spokesperson also pointed out that the existing threshold originated under previous Conservative governments.
The proposal is not currently government policy. It is a Conservative pledge and would require the party to return to government and implement the change before the existing rules could be abolished.
