During his Pre-Budget Report last week, Chancellor of the Exchequer, Gordon Brown MP announced new plans to benefit employees and their employers who provide help with childcare costs.

Under these new plans the first £50 a week of assistance provided to employees would be free from employee National Insurance and income tax and free of employer National Insurance.

Speaking today, Eric Joyce MP said

‘Employers have an important role to play in helping their staff to find affordable, good quality childcare and this announcement is an important step in encouraging them to fulfil this role whilst also providing both the employer and employee with financial benefits.

In return for investing in childcare costs on behalf of their employees, businesses will benefit from increased staff retention, saving on recruitment and training costs, improved staff morale and less absenteeism, all of which can lead to increased productivity.

I am delighted that this government is continuously looking at new ways to encourage employers to help staff with childcare costs and support those who do and encourage parents in to work and help them retain work.’