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Taxation: Carers

Volume 468: debated on Monday 26 November 2007

To ask the Chancellor of the Exchequer (1) if he will bring forward proposals to extend tax relief for child care vouchers to include the care of vulnerable disabled and elderly people; if he will make an assessment of the effects such a policy would have on employment outcomes for carers, older workers and women; and if he will make a statement; (162300)

(2) what plans he has to extend the tax-free status afforded to child care vouchers to cover the care of elderly and disabled people; and what recent representations he has had on the economic aspects of such a proposal, including any likely savings to Government thereof.

The Government are keen to ensure that people with caring responsibilities can make the most of opportunities to balance work with their caring responsibilities.

They will look carefully at the costs and benefits of any further proposals, including whether it is the most effective mechanism for tackling the issues faced by carers, particularly those experienced by specific groups, when making an assessment of the case for intervention in this area.

The Government keep tax reliefs under review and has received representations in this area. However, it does not believe that allowing employers to provide employees with tax and NICs free care vouchers is the most appropriate, fair or cost effective way of tackling the issues faced by carers.