Tories pledge to scrap £100,000 childcare threshold

Conservatives target childcare rules
The Conservatives have pledged to remove the £100,000 income threshold that currently prevents some parents in England from accessing government-funded childcare support. Party leader Kemi Badenoch said the policy would ensure parents are not financially penalised when their earnings rise.

Badenoch defends the proposal
Speaking ahead of the Conservative Party conference in Birmingham, Badenoch said the party wanted to encourage people to remain in work regardless of their income. She argued that the current system could discourage parents from increasing their earnings because crossing the threshold can result in the loss of childcare support.

30 hours of free childcare
Since September 2025, eligible working parents in England have been able to receive up to 30 hours of government-funded childcare a week for children aged from nine months to four years. However, the current rules require both parents to earn below £100,000 a year to qualify for the full entitlement.

15-hour entitlement remains universal
All three- and four-year-olds in England remain entitled to 15 hours of free early education regardless of their parents’ income. The £100,000 threshold applies specifically to the extended 30-hour working-parent entitlement.

Tax-free childcare also affected
The same income threshold applies to the government’s Tax-Free Childcare scheme. Under the scheme, the government contributes £2 for every £8 parents pay into an online childcare account, up to £2,000 per child each year.

Tories call it a cliff edge
The Conservatives have described the current system as a childcare “cliff edge” because a relatively small increase in earnings can cause a family to lose access to support. The party says removing the threshold would create a stronger incentive for parents to work and increase their earnings.

Party links policy to economic growth
The Conservatives say the proposal would form part of a wider programme aimed at changing tax rules they believe discourage work and investment. Shadow Chancellor Andrew Griffith is expected to address the issue in his conference speech.

Funding plan outlined
The Conservatives say the policy would cost around £700 million and would be funded by reducing the number of public servants working in executive non-departmental public bodies. The party estimates that changes to these organisations could save £1.6 billion by 2029-30.

Government is expanding childcare spending
The pledge comes as the government continues to expand childcare provision. The 2025 Spending Review committed an additional £1.6 billion a year by 2028-29, compared with 2025-26, for government-funded childcare entitlements for working parents.

Debate over household income
The Conservatives also argue that the current threshold is unfair because it is based on individual parental earnings rather than total household income. This means families with similar household incomes can receive different levels of support depending on how their earnings are distributed between parents.

Tories frame policy as pro-family
The party says removing the threshold could also affect decisions about starting a family. It argues that parents should not have to consider whether taking a higher-paid job could make them financially worse off because of lost childcare support.

Policy forms part of wider Tory agenda
The announcement is one of several policies being presented by the Conservatives at their annual conference as the party develops its programme ahead of the next general election. Badenoch has said the party wants to establish a broader approach to taxation, public spending and economic growth.