By James Rodger

Copyright birminghammail

Mums and dads are saving £7,500 a year on childcare costs per child thanks to a new Labour Party government scheme. Education Secretary Bridget Phillipson has announced that the Plan for Change scheme has supported 530,000 children. Ms Phillipson said: “When we launched the 30 hours childcare expansion at the start of September, we said around half a million families were on track to benefit. “Today’s figures show we have gone even further. It is fantastic to see our Plan for Change delivering for families – helping them save up to £7,500 a year per child on childcare costs and supporting parents to balance work and home life. READ MORE UK national speed limit could be slashed in ‘half’ with all drivers warned This is real cost-of-living relief that families can feel in their pockets today. “As the next bidding round of school-based nurseries kicks off today, we are not slowing down. This government is giving hard-working parents the support they need and ensuring every child gets the best start in life.” Alexandra Loydon, the group advice director at St. James’s Place, explained: “The funding is also means-tested at the upper end. Families where one or both parents earn £100,000 or more are not eligible for the free hours. “This is just one of the childcare benefits missed out on by people in this income bracket, with those earning above this threshold also not eligible for tax-free childcare, where the Government adds £2 for every £8 spent on approved childcare. “In addition, child benefit (worth £1,354.60 a year for the first child and £897 for each additional child) starts to be reduced via the High-Income Child Benefit Charge when one parent earns more than £60,000 and is lost entirely once earnings reach £80,000. “With the total cost of raising a child said to be the highest it’s been since calculations started in 2012, families with salaries just above the eligibility criteria may want to explore strategies to reduce their taxable income and make childcare more affordable. “This could include maximising pension contributions, using salary sacrifice schemes, or taking advantage of other tax-efficient allowances.”