Conservatives Pledge to Abolish £100,000 Childcare Eligibility Threshold

During the Conservative Party annual conference in Birmingham, leader Kemi Badenoch announced a pledge to eliminate the £100,000 income threshold that currently disqualifies families from receiving childcare support in England. Describing the existing rule as an “absurd cliff edge,” Badenoch argued that the policy unfairly penalizes parents who earn higher wages.

Under present regulations, working parents in England are entitled to 30 hours of free weekly childcare for children aged nine months to four years, provided neither parent earns more than £100,000 annually. While all three- and four-year-olds qualify for 15 hours of free care regardless of income, the higher tier and the government’s tax-free childcare scheme—where the state contributes £2 for every £8 paid in—remain subject to the strict earnings cap.

Economists have long criticized the threshold, noting that it can leave households financially worse off after significant pay rises, potentially discouraging additional work. Badenoch told the BBC that the party aims to ensure people are not deterred from advancing their careers or making career choices based on income brackets.

When asked if abolishing the cap would mean millionaires accessing free childcare, Badenoch maintained that earnings should not determine whether individuals are punished for working hard. She framed the removal of the threshold as both a pro-family and pro-growth measure, suggesting it would also address perceived unfairness in how the limit is calculated on individual rather than household income.

Shadow Chancellor Andrew Griffith described the move as the initial phase of a broader strategy to establish a tax system that is lower, simpler, and fairer. The Conservative Party stated that the estimated £700 million annual cost of the policy would be offset by cutting funding to executive non-departmental public bodies, such as the Arts Council England and the Environment Agency. These reductions are projected to save £1.6 billion by the 2029-30 fiscal year.

Badenoch arrived in Birmingham vowing that the party has evolved since its defeat in the 2024 general election. With polling showing the Conservatives trailing both Labour and Reform UK, the conference serves as a platform to further outline the party’s policy agenda ahead of the next election.