The official version of this document can be found via the PDF button.
The below content has been automatically generated from the original PDF and some formatting may have been lost, therefore it should not be relied upon to extract citations or propose amendments.
Dear Minister
Following on from my previous email, I've now reviewed the figures and am concerned the proposed changes to free nursery hours could easily be out weighed by loss in revenue, if more mothers decide to stay at home as a result of the proposed changes.
For mothers considering returning to work versus staying at home it can be such a hard and emotional decision and these changes may be the factor that tips the balance.
Considering the figures, a family can earn £27,000 and pay no tax.
A family on £75,000 will be paying between 16% and 19% tax. Based on my experience and that of those I know, I've taken 18% as a fair average. 18% tax would total £14, 250
This reduces their income to £60,250
You then need to consider the existing cost of childcare as many family's now have children close together and are paying for childcare for more than one child. I am an example of this. My little girl will get her free hours this September but I still need childcare for my 1 year old at cost of £908 per month.
Taking this as an example an income of £60,250 becomes £49,894 There is then the cost of working ie paycards, clothes, lunches etc Income becomes £48,000
Then there is the cost of £4,000 you are proposing. Income becomes £44,000
A true take home income of only £17,000 above the tax free amount, for all the additional stress and strain of having two parents working, loss of time with children, stressful jobs etc (ie is it worth doing a £37,000 job and all the stress that comes with it to be left with £17,000)
I think many mothers will consider all this and may choose not to return to work. It could be the straw that broke the camels back.
For every mother that decides to stay at home I estimate you will lose at least £10,000 in tax revenue.
Therefore if about 20 further mothers stay at home the saving of £250,000 you are proposing will be lost.
Please reconsider your proposals and ensure a full and detailed analysis is done. The above is just one of many financial and social considerations. I think these changes will effect so many adversely.
(Apologies for the rough format of this email I'm typing on my phone whilst my children have their knap.)
Yours faithfully
Here is my second e-mail.
In my rough analysis I forgot to mention the 6% social that working mothers have to pay.
By comparison if mothers stay at home they claim home responsibility protection so nothing to pay.
It can be so hard for mothers to leave there young children with a carer and return to work. I really think many will be discouraged by these proposals and the island tax revenue will suffer in the long term as a result, as opposed to being a saving.
With these proposals I would certainly have stayed at home if I had my time again. Yours faithfully