Nick Clegg has revealed Liberal Democrat plans to scrap the new married couples’ allowance, and reinvest the money in child care.
The allowance, which comes into effect in April next year, is worth up to £200 a year to married couples, and will cost the state over half a billion pounds in its first year, rising to £800m by 2018.
The tax break benefits married couples where one partner isn’t working, by allowing one partner to transfer up to £1050 of their unused personal tax credits to their husband or wife.
The Lib Dems, who have always been outspoken against the introduction of the allowance, plan to scrap the allowance and instead use the money to provide free childcare for all two-year-olds.
This plan would extend the current government child care scheme which provides 15 hours of free childcare to three and four-year-olds.
The scheme has already been extended this month to include some two-year-olds from poorer families on a means-tested basis, but the new plans will extend it to all families.
The party admits however that the cuts from the married couple tax break won’t fully cover the costs of extending free child care.
Liberal Democrat Business Minister Jo Swinson MP called the new plan evidence of their “fundamental difference in values” from the Conservative party.
“Liberal Democrats want to help all families with childcare support and nursery education right the way through from the end of parental leave to the start of school,” she stated.
“The Tories are more bothered about helping only some couples through a married couples’ tax break.”
“Extending free early years education to all two year olds will benefit children and reduce childcare costs for working parents.”
However, Labour’s Shadow Minister for Childcare and Children Lucy Powell slammed the Liberal Democrats for making promises they can’t keep.
“There’s no point the Lib Dems making more promises when people remember only too well the promises Nick Clegg and his party have already broken,” she said.
The Labour party has also vowed to scrap the married couple’s allowance in their upcoming election manifesto.
