Last week a legal debate over who should run the launch of a new core Government scheme meant it was delayed until early 2017.
The result of the delay was that almost two million families missing out on 18 months worth of savings equalling £3,000, This is Money reported.
The new tax-free plan which would give 20p towards every £1 of nursery fees, up to a maximum £2,000 per year for working parents, should have started this September.
Ellen Broome, director at campaign group Family and Childcare Trust, commented: “There will be a lot of parents left very disappointed by the delay.
“This leaves them without extra financial support for childcare costs until 2017.”
The new childcare tax break proposed to replace the existing system in which parents claim vouchers via their employer.
To be eligible for the new plan, parents need to earn less than £150,000 a year and not be claiming tax or universal credits.
Parents need to make a decision soon regarding which scheme fits them better, as once the new one arrives no one will be able to sign up for vouchers. It is predicted that for wealthy parents, the old scheme will be best, but for those at the poorer end, the new one will prove to work better.
Deciding which scheme will be best long term involves checking tax bands and calculating how much childcare is required per year.
Jo Dalby, director at Busy Bees voucher company, said: ‘Whether you’ll be better off depends on how much childcare you have, and how much you earn.”