TORIES PLEDGE TO END £100,000 CHILDCARE CLIFF EDGE

The Conservative Party has pledged to end a £100,000 income threshold that it says cuts parents off from free childcare support in one abrupt step, rather than reducing it gradually. The party announced the commitment on the eve of its party conference. Under current rules, a household can lose its entitlement to funded childcare hours entirely once one parent's income passes £100,000. The Conservatives said this cliff edge forces some parents to limit their hours or turn down a pay rise, because the lost childcare support can outweigh the extra pay. The party presented the pledge as part of its plan to support working parents.

England's free childcare scheme applies an income test to each parent individually, rather than assessing combined household earnings. If either parent's income exceeds £100,000, the family loses its entitlement to funded hours and tax-free childcare, instead of losing that support gradually. The Conservatives said this design can leave a parent earning just above the threshold worse off than one earning just below it, once lost childcare support is counted. The party said this creates a direct incentive for parents to reduce their hours or decline extra work to stay under the limit.

The Conservative Party made the announcement ahead of its party conference. The party described the £100,000 threshold as an example of a system that penalises parents for earning more, rather than supporting them as their income rises. It said affected families can lose thousands of pounds in childcare support in one step once a parent's income crosses the threshold. The pledge sets out an intention to change the threshold, though the current rules remain in place for now.