I have decided to blog this letter rather than rewrite it as it states the issues very clearly. I hope you will sign the petition which is going to affect our hard working families.

Dear Mrs Drummond,

I am writing with regard to an issue that affects every constituency, not least Portsmouth South.

Gordon Brown used his 2009 Party Conference speech to announce the phasing out of tax exemptions which underpin Employer Supported Childcare (childcare vouchers) from April 2011. The intention is to use any savings to fund 10 hours free childcare per week to 250,000 two-year olds from lower income families. The overall effect of this move, however, will be to reduce child care support that many hardworking families rely on.

This decision will significantly affect working parents and employers in Portsmouth South, many of whom are basic rate taxpayers. Such tax payers currently £900 per year towards their childcare costs, through the scheme, but will now see their childcare costs rise by over 20% (per family). Indeed, over 600,000 working parents across the country have benefited from employer supported childcare and would struggle if the benefit was removed.

Nationally, 33,000 businesses use childcare vouchers, many of whom are struggling to stay afloat in the recession and will also be hit by the move, as the Federation of Small Businesses explains: “Childcare vouchers help employers and employees manage the difficult balance between work and childcare, cutting costs for mothers and allowing them the flexibility they need. They are vital to small businesses who can’t otherwise help subsidise childcare without incurring financial penalties. If the government is serious about addressing equality and the gender pay gap it won’t stop this vital scheme.”

Maria Miller, Shadow Children’s Minister also criticised the decision by saying: “It is hard sustaining family life… The prime minister is axing [tax efficiencies on] childcare that 300,000 working parents need. These are basic rate taxpayers, working in areas such as the health sector and doing vital jobs. They rely on this support. Hard-working families will be left to pick up the pieces and this has got to stop. A Conservative Government will support families, building systems around them for childcare.”

Many parents, employers and child carers are lending their voices to the campaign through signing a petition on the Downing Street website calling on the government to reverse its decision. This is currently the most popular and fastest ever growing petition on the site, with over 70,000 signatories at last count. The petition can be found at: http://petitions.number10.gov.uk/keepvouchers/.

For further information, please contact us on: 020 7222 9500 or at: savechildcarevouchers@cvpa.org.uk.

Best wishes,

Marc Woolfson, Campaign Director – Save childcare vouchers campaign