Workers receive childcare boost

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Workers receive childcare boost

Employees who receive help with childcare costs from their employers are to receive a tax break. Tax is how the government raises money to spend on public services, such as education, health and the social security system. It can be levied on goods, services and range of transactions, such as inheritance and profit made on the sale of homes or antiquities.

 

Workers will be able to receive up to £50 per week in subsidised childcare services, childcare allowances or vouchers tax-free. Subsidies are grants given by the government to encourage production. This will be able to favour workers and will make labour more efficient an example can be that a worker at a particular factor can higher a baby sitter at times where she or he may not because she/he has got the money through the grant which will make the efficiency of labour at the factory more effective hence pushing up the economy through the of the labour because of the subsidy. As might be shown in the below production possibility frontier.

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This frontier shows economic growth in that the inputs which are seen as subsides in this case because they favour efficiency.  And as we already know that the quantity of inputs to the production process means that an economy has increase its production potential.

Previously parents had only received tax free help if their employer managed the childcare facility.

The news came as the chancellor announced his twice yearly pre-Budget report. This stated that the government has capped financial support at £50 a week - well below the typical cost of £128 a week ...

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