Subject: DOH:NEW NHS CHILDCARE ALLOWANCE

DEPARTMENT OF HEALTH
2004/0184                                                           11 May 2004 
NEW NHS CHILDCARE ALLOWANCE

Health Secretary John Reid today launched a new childcare allowance for NHS-funded students to help with childcare costs during their studies. It's expected to cost the government £17 million a year to fund.

Under the scheme up to 85% of childcare costs could be met, helping around 6,000 students a year. Up to £114 per week for students with one child or £170 per week for two or more children could be available.

Eligible students, both existing and new, will be able to claim the allowance from September 2004.

In a speech to the Royal College of Nursing Congress in Harrogate, John Reid said:

"Many NHS-funded students who are parents face difficulties when embarking on training due to increased financial commitments, including childcare costs. This can make training less attractive to mature students, single parents and those with partners on a low wage.

"I want parents who are interested in becoming nurses, midwives or physiotherapists to start their training knowing that the NHS will help them with childcare while they learn.

"It is crucial that the NHS recruits and retains talented and skilled individuals. To do this we must widen access to professional training and boost student retention.

"I'm delighted to announce a new childcare allowance to help NHS funded students with the costs of childcare during their studies. This allowance will pay 85% of maximum eligible costs. This means up to £114 per week for one child or up to £170 per week for 2 or more children. This new allowance will be means-tested so that funding can be targeted where it's needed most. I expect around 6,000 students a year to benefit."

Stephen Burke, director of national childcare charity Daycare Trust,
said: "The new allowance will make a significant contribution to parents' childcare costs.  It will be warmly welcomed by parents training to join NHS professions.  The costs of childcare are a major barrier for parents who want to train and work.  It will complement the NHS Childcare Strategy, which has helped to recruit and retain many key NHS staff."

Notes for editors

1. Students can check their availability for help with childcare costs by calling 0845 009 2559

2. Childcare costs for children under 15 and under 17 if the child has special needs will be eligible.

3. For media enquiries only, call Jennifer Wheatley on 020 7210 5230 or Victoria MacCallum on 020 7210 5281 in the Department of Health media centre.



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