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The Conservative Party has pledged to eliminate the so-called “absurd cliff edge” in childcare support that affects parents in England earning over £100,000 annually. Currently, families are only eligible for government-funded or tax-free childcare if neither parent surpasses this income limit. This rule means that once a parent’s earnings exceed £100,000, they lose access to these benefits, which many have criticised as unfair.
Kemi Badenoch, the Conservative leader, explained to the BBC’s Sunday with Laura Kuenssberg programme that the party’s objective is to ensure that those who work harder are not penalised. She emphasized, “What we want to see is that people who work harder don’t get punished for doing so.” The announcement coincides with the party’s annual conference held in Birmingham and marks a preliminary step toward broader efforts to reform tax policies that the Conservatives believe currently undermine work and investment incentives. Shadow chancellor Andrew Griffith is expected to further address these themes in his upcoming conference speech.
Since September 2025, working parents in England have been entitled to 30 hours of free childcare for children aged nine months to four years, provided neither parent earns over £100,000. This same income threshold also applies to the tax-free childcare scheme, in which the government contributes £2 for every £8 paid into an online childcare account, up to a maximum of £2,000 per child each year. The Conservatives intend to abolish the £100,000 earnings limit, allowing families to retain childcare support regardless of income. Economists have criticised the current threshold for paradoxically leaving some families financially worse off after receiving a substantial pay increase.
Badenoch reiterated the party’s stance, stating that they do not want income thresholds to discourage people from working more or making certain life decisions. She said, “What we want to see is more people in work and not taking the wrong decisions or the wrong choices, and it doesn’t matter whether they’re earning £10,000 or £100,000 – what matters is that people are out there working.” When confronted with the prospect of someone earning £1 million still qualifying for free childcare under a Conservative government, she responded, “It doesn’t matter what you earn – we don’t want you to be punished for working hard. What we’re trying to do is grow our economy.”
The Conservatives argue that the income cap can deter some from starting or expanding their families until their financial situation changes, describing its removal as beneficial both for families and economic growth. They also criticise the current system for basing eligibility on individual income rather than considering the combined earnings of the household, calling this approach unfair. Andrew Griffith reinforced these points, stating, “Removing this childcare cliff edge is the first step in our mission to deliver lower, simpler, and fairer taxes across the board.”
Funding for the policy is planned to come from cuts to staff numbers within executive non-departmental public bodies—semi-independent organisations involved in government processes, including Arts Council England and the Environment Agency. The party estimates these cuts will save £1.6 billion by 2029-30, covering the £700 million cost expected from scrapping the childcare cliff edge. Badenoch arrived in Birmingham ahead of the conference, pledging that this iteration of the Conservative Party differs fundamentally from the one that suffered defeat in the 2024 general election. With current polling trailing behind Labour and Reform UK, the party aims to use the conference to unveil more policies as it prepares for the next election cycle
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