Londoners could end up refusing substantial pay rises in a bid to benefit from the government’s major expansion of childcare, MPs have been told.
Millions more parents will be entitled to 30 hours of free childcare each week from when their babies are nine months old, in plans announced by Chancellor Jeremy Hunt in the Spring budget.
The childcare overhaul was designed to help more parents get back to work.
But experts said “very odd incentives” in the system mean wealthier parents such as those living in London may be encouraged to turn down pay rises.
This is because families can only claim the free hours if each parent earns less than £100,000.
