Kemi Badenoch has pledged to scrap the £100,000 salary cap on free childcare, a move that would extend the benefit to high earners. The Conservative leader made the announcement at the party conference in Birmingham, vowing to remove the so-called “cliff edge” that currently cuts off support for families where one parent earns more than £100,000.
“If you are a parent, we will make sure free childcare is never removed because of a pay rise,” Badenoch told attendees. Under current rules, families lose tax-free childcare support if one parent earns above the threshold, and parents are entitled to 30 hours of free childcare for children aged nine months until they start school.
Expansion to include millionaires?
When pressed on whether the expansion could include people earning as much as £1 million a year, Badenoch did not deny they would be included. Speaking to BBC News, she said: “It doesn't matter what you earn, we don't want you to be punished for working harder.” She added that “the number of people who have very small children, who are earning tens of millions of pounds is negligible.”
A universal 15 hours is currently offered to parents of children aged three and four, while the working parent offer is available to employed parents earning at least minimum wage and under £100,000.
Funding and other policies
While Badenoch has not announced exact figures to support the scheme, she claimed it could be funded by driving down the benefits bill. She said it was not “lots of elderly people earning £10-£12,000 per year on the state pension,” but instead “the huge number of people who can work, who don't work.”
The childcare pledge is among several policies aimed at benefiting high earners. Badenoch also announced she would abolish inheritance tax in a bid to win back traditional Tory voters in the South East who are considering voting for Reform UK. The vow came as Prime Minister Andy Burnham hinted he would shift away from the current way the triple lock is calculated, which he claimed would save money.
