Middle-class families to lose childcare aid

London: Tens of thousands of middle-class families will lose childcare vouchers worth more than £2,000 (Dh12,300) a year despite a humiliating climbdown by Gordon Brown.

Under pressure from women Labour MPs who said mothers would quit work over the plans, the prime minister is to make a U-turn on his decision to scrap the scheme entirely.

But Downing Street on Sunday night signalled that about 100,000 higher-rate taxpayers will still lose the tax breaks worth up to £2,390 a year.

Ed Balls on Sunday risked infuriating those earning more than £43,000 by describing their inclusion in the scheme as a "deadweight cost."

The Children's Secretary said higher-rate taxpayers accounted for one third of the cost of the Employer Supported Childcare scheme — about £200 million — but represented just six per cent of the workforce.

Labour has previously claimed that some middle-class parents have used the vouchers to subsidise pony riding lessons, although there is no evidence of this.

Brown announced that the scheme would be scrapped to free cash to help poor families just six weeks ago. Downing Street now believes the decision to save it will buy off a furious rebellion from parents and Labour MPs.