The Conservatives have pledged to remove the £100,000 earnings threshold that prevents some parents in England from receiving government-funded childcare. The party says the proposal would allow all parents working at least 16 hours a week to claim 30 hours of childcare, regardless of how much they earn.
The policy, announced ahead of the Conservative Party conference in Birmingham, is expected to cost about £700 million a year. Conservative leader Kemi Badenoch says the existing rules can discourage parents from accepting higher pay or additional work because childcare support disappears once either parent’s adjusted net income rises above £100,000.
How the Current Childcare Threshold Works
Since September 2025, working parents in England have been entitled to 30 hours of government-funded childcare each week for children aged between nine months and four years, provided they meet the relevant employment and income conditions.
According to the UK government’s eligibility guidance, a household cannot receive Free Childcare for Working Parents if either parent has expected adjusted net income above £100,000 in the current tax year. Eligible parents generally need to meet minimum earnings requirements equivalent to working 16 hours a week at the applicable National Minimum Wage or National Living Wage.
The £100,000 limit applies to each individual rather than to combined household income. This means a family can lose the entitlement when one parent exceeds the threshold, irrespective of how much the other parent earns.
The same £100,000 income threshold also applies to the tax-free childcare scheme. Under that programme, the government adds £2 for every £8 paid by parents into an online childcare account, up to £2,000 per child each year.
Badenoch has described the existing cut-off as an “absurd” cliff edge. Speaking to the BBC, she said the Conservatives did not want people to stop working because of the way childcare support is withdrawn. “What we want to see is that people who work harder don’t get punished for doing so,” she said.
Conservatives Say Policy Would Be Funded Through Public-Body Job Cuts
Under the Conservative proposal, the £100,000 ceiling would be removed entirely. Parents would remain subject to the requirement to work at least 16 hours a week, but there would no longer be an upper earnings limit for access to the 30 funded hours.
According to the BBC, the Conservatives estimate that ending the threshold would cost approximately £700 million annually. The party says the expense would be covered by reducing the number of public servants working in executive non-departmental public bodies.
Conservative officials say those reductions could save £1.6 billion by 2029-30. Organisations cited include Arts Council England and the Environment Agency, while NHS bodies would not be included in the proposed savings.
Badenoch said the policy was intended to prevent parents from turning down promotions or salary increases because of the financial consequences of losing childcare support. She also argued that women are often more affected because they frequently carry a greater share of childcare responsibilities.
Labour has criticised the proposal. According to The Guardian, a Labour spokesperson said the Conservatives were seeking to reverse a threshold that their own government had introduced, while prioritising a policy that would benefit higher earners.
The Conservatives have presented the proposal as the first step in a wider attempt to change parts of the tax system that they say discourage work or investment. Shadow chancellor Andrew Griffith said removing the childcare threshold formed part of the party’s aim to create “lower, simpler, and fairer taxes across the board”.
